View more on these topics

Altin looks to distressed strategies

Fund of hedge funds manager 3A is looking to add less liquid areas such as distressed strategies to its London-listed Altin fund.

The firm is continuing to reduce cash in the portfolio and believes now is a good time to be fully invested. It has reduced its allocation to cash from 14 per cent in March to just over 6 per cent in July, and has taken active steps to manage the fund’s discount to NAV.

The discount opened up as the global financial crisis hurt investor confidence and prompted indiscriminate selling of hedge fund assets as investors rushed to get out of anything perceived, rightly or wrongly, as risky.

To dispel the myths about hedge funds, Altin disclosed the holdings in its entire portfolio for the first time in March and recently did so for a second time, which has helped to reduce the discount.

The discount to NAV stood at 32 per cent at the time of the first disclosure and had narrowed to 20 per cent by mid-July. 3A says that an improvement in market conditions has contributed to the rise in the share price, which has impacted positively on the discount, as well as a share buyback programme under which 3A can buy back up to 10 per cent of Altin’s share capital.

3A Chief investment officer Jose Galeano says: “Our intention is to take advantage of less liquid strategies. One of these is distressed strategies, which many people are talking about it. We have not invested until now, but we will. The discount is narrowing and this is producing better results for investors.”

Recommended

Newcastle Home Loans banned by FSA

The FSA has banned and fined Newcastle Home Loans £170,000 for submitting false information in mortgage applications. In a separate action, the regulator banned Cornwall mortgage broker Stephen Sanders for fraud this week.

1

Capital city

Legal & General kicked off the life sector’s interim results season on Tuesday and some general trends have been developing since.

Tax allowances and exemptions

Helen O’Hagan, Technical Manager at Prudential, looks into the planning strategies that can deliver considerable tax savings for your clients. Inheritance tax (IHT) Consider Margaret, featured on our Planning Matters family hub, who is a sprightly eighty year old with four children and several grandchildren. She’s recently been widowed and IHT planning is high on […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com