F&C adds absolute Gem
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F&C is to launch an absolute return fund investing in global emerging markets next month co-managed by Kristof Bulkai and Hugo Rogers.
The duo also co-manage the Thames water & agriculture absolute return fund and Thames Isis fund which has a global emerging markets long/short strategy.
The new fund will have daily liquidity and access to the full range of Ucits III powers. Bulkai and Rogers will build a portfolio of long and short positions to protect capital in tough market conditions.
Their investment process starts with a top-down macro view to drive the core investment ideas but F&C says the managers will adopt a value-driven approach to long and short stock selection. They will maintain an active short book with strict risk controls.
Bulkai says: “In the past decade, the rising tide in emerging markets has lifted all boats but there is an increasing divergence in performance between sectors, which makes an absolute return approach more appropriate.
“Many supposedly absolute return funds oscillate between being fully invested in equities and having a high cash weighting but this fund will be as active on the short side as in its long portfolio.”
Chelsea Financial Services managing director Darius McDermott says: “Emerging markets are growing increasingly divergent as they mature. For investors concerned about varying volatility among regions, this fund will exploit performance gaps between markets to deliver more efficient portfolio management. There is no reason why long-only should be the only option to investors in glo- bal emerging markets.”
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