Monday, 20 October 2014
Last updated 3 days ago
Jul 26 2007 | 11:50am ET
U.K.-based F&C Asset Management is the latest asset management firm to enter the 130/30 space. The firm plans to launch its F&C UK Enhanced Alpha Fund in August, targeting a return of 4% over the FTSE All Share Index.
The offering will be structured as a SICAV, domiciled in Luxembourg, with a sterling share class for both institutional and retail investors. The fund will invest in U.K. stocks, employing a fundamental and bottom-up stock picking approach, according to fund documents.
The fund’s long portfolio will consist of 40 to 60 stocks and 10 to 15 stocks in its short book. Portfolio managers Makis Kaketsis and Luke Newman also manage F&C's UK Dynamic Fund and its Special Situations Fund respectively.
"As long-only fund managers, perhaps the greatest constraint to generating excess return is the inability to short, in other words our ability to express our negative view of a stock is very limited," Richard Wilson, head of U.K. equities at F&C Asset Management, said. "Our long only positions still need to be able to outperform the benchmark but by combining an element of netting off between the long and short positions, the risk return profile is also more favorable."
The new 130/30 charges management fees of 1% and a 20% incentive fee on any gains over the FTSE All Share index.
F&C managed some €151.4 billion under management (US$208.5 billion) as of March 31.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...