Absolute Return

Harold Heuschmidt, Aquila Capital: “Absolute return Ucits funds offer enhanced transparency, liquidity and oversight – all increasingly important criteria for investors”

Aquila Capital’s Harold Heuschmidt (pictured) says the Risk Parity funds of which he is head manager use a multi-asset investment strategy that allocates risk across different asset classes offering a risk premium, namely equities, bonds, commodities and interest rates, with the contribution of each asset class risk-weighted to balance risk proportionately across the portfolio. »

Giles Worthington and Tim Short, RiverCrest Capital: “Investors need to be really able to trust the manager and to have a frequent, honest and open dialogue with them”

Giles Worthington (pictured) and Tim Short, portfolio managers of the RiverCrest European Equity Alpha Fund, say their strategy – offered through a Ucits platform – should be capable of performing well in macro-dominated environments, since the investment process combines stock-picking with portfolio construction and risk management disciplines to neutralise market-associated risks and isolate alpha. »

Nadejda Rakovska, Volvar Asset Management: “Clearing of standardised OTC should facilitate investors’ shift from traditional to new asset classes”

Nadejda Rakovska, chief executive of start-up volatility specialist Volvar Asset Management, which is preparing to launch its first fund as a self-managed Luxembourg Sicav SIF, expects volatility to be recognised as a separate asset class that will attract increased allocations from multi-managers and balanced portfolios and prompt more players to launch funds. »

The Interview – Mark Martyrossian and Mark Fleming, Tiburon Partners: “In an age of information overload, the key to successful investment is to distinguish intelligence from information”

Mark Martyrossian and Mark Fleming (pictured), partners in Asian equities specialist Tiburon Partners and co-managers of the Tiburon Taipan and Tiburon Taurus funds, believe that the region was unfairly punished last year, underperforming the US and performing in line with much of Europe despite its stronger macro credentials, and that many stocks are trading at dirt-cheap valuations. »

The Interview – Julian Rogers-Coltman, FF&P Capital Management: “We are mindful of the risk further bad news as the peripheral European economies continue to deteriorate”

Julian Rogers-Coltman (pictured), chief executive of Fleming Family and Partners Capital Management, says the absolute return asset manager’s two surviving funds are well set to capitalise on the continuing market volatility, but he acknowledges that fundraising will remain difficult until fears of a double dip recession dissipate and it becomes clearer how weaker European countries can escape the sovereign debt trap. »

The Interview – William Kitchin, Alternative Advisors: “Our clients are now more focused than ever on regulation, transparency and liquidity”

Alternative Advisors’ William Kitchin (pictured), portfolio manager of the Castillon Diversified Fund, a Ucits absolute return fund of funds, says that while the fund is constrained in its selection of underlying managers by the need to match the liquidity it offers to investors, this is not a particular disadvantage in the short term given the current macro economic conditions. »

The Interview – Alistair MacDonald, Merrion Investment Managers: “Volatility in markets produces opportunities particularly for investors that can identify both long and short ideas”

Alistair MacDonald, co-manager of the newly-launched Merrion European Absolute Return Fund, argues that Ucits III hedge funds are benefiting from the current uncertainty over the final form and substance of the European Union’s AIFM Directive as well as concerns over the costs of implementing its requirements. »

The Interview – Chris Day and George Cadbury, Merchant Capital: “There is a massive opportunity for high-calibre managers to raise money through a Ucits structure”

Merchant Capital directors Chris Day (pictured) and George Cadbury say the firm, which last year launched the first Dublin-domiciled Ucits umbrella fund created specifically for Ucits absolute return funds, is looking to launch up to 10 funds over the course of 2010 following the debut of the long/short Merchant European Equity Fund in January. »

The Interview – Spike Hughes, Insynergy Investment Management: “It is difficult to see how investors will recapture lost value through cash or cash-like investments”

Spike Hughes, chief executive of Insynergy Investment Management, says that building on the existing success of its initial retail fund run by Crispin Odey and new absolute return funds targeting India and China, the firm will seek out further world-class investment teams with proven strategies that can be adapted to a Ucits structure. »

The Interview: Fred Sage, Decision Analytics Advisory Partners: “Repackaging hedge funds as Ucits-compliant structures is new territory for the investment management industry

Fred Sage, managing partner of Decision Analytics Advisory Partners, says the Next Generation Absolute Return Ucits Sicav and Ucits Fund of Funds will offer investors a unique selection of hedge fund strategies with all the protection offered by a Ucits umbrella fund structure, backed up by a broad range of internal and third-party sophisticated Ucits funds expertise. »

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Upcoming training

Mon, 12/05/2014 (All day) - Dubai
Tue, 13/05/2014 (All day) - Dubai