Monday, 3 August 2015
Last updated 8 hours ago
Aug 10 2012 | 1:29pm ET
The Varus Fund, a Swiss-based long/short hedge fund specializing in German mid and large-cap companies, is up 3.06% in July.
That puts the fund down 6.04% year to date and up 38.6% since inception.
In their monthly letter to clients, Varus founders (and Absolute Capital Management veterans) Stefan Heieck and Frank Siebrecht characterize the July numbers as “an excellent risk-adjusted July result with minus 6.2% average net exposure.”
“We bought Siemens into their weak Q2 figures on 26 July 2012 in anticipation of a special dividend later this year. The Siemens shares increased by 15% supported by their surprise share buyback announcement vs. bond placement—don`t worry, be happy if you are able to buy Germany`s largest company with a market cap of EUR 68 billion at the right time of the year.”
In H2, the managers say, they expect to profit from short bonds versus high-yield and share buyback stocks, citing companies like Adecco and Siemens which have already issued bonds to finance buybacks of their own shares and listing a number of others (including Adidas and Software AG) which they believe may follow suit.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…