The Coast Capital Engaged Fund advanced 3.3% in Q2 despite market turmoil that saw a 16% drop in both the S&P 500 and MSCI Europe indices.

The Coast Capital Engaged Fund advanced 3.3% in Q2 despite market turmoil that saw a 16% drop in both the S&P 500 and MSCI Europe indices.

Year to date, the event-drive fund has appreciated by 15.0% versus a 22.3% decline for MSCI Europe index. 

And despite some managers including Ray Dallio, the founder of the world's largest hedge fund Bridgewater Associates, betting against European stocks, Coast Capital manager James Rasteh has found value in continental companies.

Writing in a recent investor letter, Rasteh said: "Europe has been and remains very fertile ground for our fund given low valuations and market inefficiencies due to MiFID regulations. The recent sell-off has made our target market much more attractive than North American markets.

"Our new investment candidates offer much higher, uncorrelated returns than we might expect from similar US investments. Furthermore, our target companies have strong and growing cashflows with minimal leverage making them attractive companies to own for public equity investors and PE firms alike. 

"We are making investments in companies which are indisputably leading providers of transformative technologies that the world needs. We are buying into these companies at deeply distressed valuations."