View more on these topics

3A sticking with liquid strategy

Fund of hedge funds manager 3A has invested 10 per cent of its Altin fund in new equity long/short and global macro positions.

The company has been favouring liquid strategies since 2007, which enabled it to build up a 22 per cent cash weighting recently, earmarked for new investments.

3A likes global macro and equity long/short strategies as they enable Altin to benefit from market price discrepancies.

Two out of three of the new global macro positions are funds that trade commodities futures and the equity long/short position is a fund that has reopened after closing in 2008. It trades medium and bigger companies which 3A regards as a good way to allocate money.

Altin is now waiting for the right time to go into illiquid strategies such as distressed markets.

3A chief investment officer José Galeano says: “Altin is a liquid fund and that is a big advantage compared with some. We may invest in illiquid strategies – the distressed market is the most obvious one – but do not think the risk and reward it offers is good.

“We will be waiting for an entry point into distressed markets because the danger is investing too early. As the markets recover, it is difficult to know where to go for sure but we think global macro and equity long/short are great opportunities for now.”

Recommended

European recovery to be gradual, says IMF

Even with more forceful policy actions, the downturn in Europe is likely to last until early 2010 and the subsequent recovery is expected to be gradual, the International Monetary Fund (IMF) says.In its Regional Economic Outlook for May, the IMF says that restoring confidence, adjusting to a lower level of wealth and reducing leverage in […]

Watch out for Budget bill

I hope Julian Stevens will now read the small print in the Budget. He seems to think that for someone earning £150,000 or more, the answer is for the company to make a pension contribution instead.

Solving the income puzzle

There is a puzzle at the centre of financial markets. The global economy is growing, there are signs of inflation and interest rates are going up, yet yields remain low. In this article, James Foster, manager of the Artemis Monthly Distribution fund, unpicks this conundrum and looks at where investors can find income. There is […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment