SVM Touts Long/Short Offerings

Nov 12 2008 | 9:46am ET

With the spate of bad news dominating the hedge fund space, the few shops that are actually generating positive for their investors are not shy to share their good fortunes with others.

Edinburgh, Scotland-based SVM Asset Management said that its US$38 million Highlander Fund, a pan-European long/short offering, has returned 18.1% to date.

Lead portfolio manager Colin McLean said the fund’s long positions focused mainly on defensive sectors such as pharmaceuticals and tobacco stocks and its short book mainly comprised stocks in capital goods, consumer services, technology and property.

“This performance has been achieved against a backdrop of extreme market volatility and is a testament to the rigorous risk control and stock selection processes that we apply to our investments,” he said.

SVM’s Saltire Fund, a long/short fund co-managed by McLean and Margaret Lawson that focuses on U.K. mid- and small cap equities, has also outperformed its peers returning 17.9%.

However, SVM’s portfolio is not entirely impervious to the market. The firm’s newly launched multi-strategy funds of funds, SVM Cautious and SVM Balanced Funds, have gotten off to rough starts since they began trading in May. Since inception, the Cautious Fund lost 12.3% and the Balanced Fund dropped 9.5%.

Both funds invest in an actively managed portfolio of cash and bonds as well as specialist funds, including private equity, property and hedge funds.

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