The Julius Baer Absolute Return Europe Equity Fund has returned 6.98% since its launch on 30 September 2010. This compares favourably to the fund’s benchmark LIBOR EUR 3m which was flat over the period, as well as other European market indices, for example the Euro Stoxx 50, which returned 2.1%.
European stock markets showed renewed vigour towards the end of 2010 and had a positive end to the year. Cyclical sectors such as IT or base materials performed better than defensive industries such as pharmaceuticals or telecommunications.
"The JB Absolute Return Europe Equity Fund benefited from its pair trades in the energy, technology and industrial sectors," says fund manager Andy Kastner. "We have increased exposure in industrial securities and reduced our investments in the technology sector."
The fund aims to generate absolute returns by adopting a sector-neutral approach. The market and sector neutrality are achieved via a portfolio of 50-80 long and short equity positions. Every attractive stock (long position) is paired with a counterpart short position from the same sector in a pair trading approach. The two positions are given an equal weighting ensuring that the strategy is neutral in terms of both the market and the sector.
Yen carry trade risks mount
Hedge funds and other leveraged investors face renewed risks from the yen carry trade as Japan moves further away from decades of…
More
Valour launches first crypto hedge fund using Neuronomics AI strategy
Valour, the digital asset investment products subsidiary of DeFi Technologies, has launched its first hedge fund as it expands beyond…
More
SocGen targets strong prime brokerage growth
Societe Generale is planning to significantly expand its prime brokerage business as part of Chief Executive Officer Slawomir Krupa's…
More