Eucalyptus Relaxes With New Fund Of Funds

Nov 3 2008 | 10:56am ET

Eucalyptus Investment has launched a fund of hedge funds that takes a laid-back approach to thematic investing in underlying managers.

According to the Zurich, Switzerland-based firm, the Eucalyptus Relax Fund uses a macro approach to invest and identify what it believes will be the most lucrative investment themes over the coming years. The fund boasts a roster of between 10 and 20 underlying managers in the commodities, infrastructure, emerging markets, healthcare, new technologies and energies spaces.

Relax also employs a systematic trading model that buys exchange-traded funds when share prices are rising and takes short positions to generate positive returns when stock markets are falling.

In it first two months of trading, the fund is up 1.78%. It actually enjoyed a strong September, gaining 3.2% while most hedge funds were posting losses.
 
The firm said the two big waves that had a large impact on the fund in September were the dramatic sell-off of clean technology stocks and the huge drop in the Russian stock market.

“Based on the good fundamentals and the attractive valuations we are thinking about increasing our clean tech allocation,” said the firm. “The performance contribution of our other themes was flat for the month, while the protection allocation was up.”

Eucalyptus was founded in 2006 by Andreas Benz, a former regional manager at Man Investments’ RMF, where he was responsible for marketing and sales to German-speaking Europe. The firm in July added Matthias Pfister, formerly head of portfolio management at Winterthur Asset Management.


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