Fund of hedge funds manager 3A has increased exposure to macro and long/ short equity strategies in its Altin portfolio, which returned 3.87 per cent this year.
Macro strategies comprise 22.46 per cent of the fund, up from 19.51 per cent in July. 3A says the increase was focused on hedge fund managers with a bias towards commodities, leading to the LD commo alpha fund being added to the portfolio.
Managed by commodities specialist Louis Dreyfus, LD commo alpha enables Altin to diversify away from equities and bonds through agricultural commodities.
Altin’s exposure to equity long/short strategies rose to 32.24 per cent from 29.15 per cent in July.
Portfolio manager Joe Shaw says 3A favours long/short equity managers who run liquid portfolios that trade frequently as they can quickly cut losing positions while holding those positions that are doing well.
Altin’s leverage is up slightly. Gross exposure is 122.71 per cent from 117.83 per cent in July, which 3A says shows the confidence it has in its manager selection. Gross exposure is a measure of leverage that expresses a portfolio’s total long and short positions as a percentage of net asset value.
Shaw says: “We are happy with the portfolio. We like all the mangers as we have only top quality managers in there.”