View more on these topics

Artemis UK growth fund to add shorting strategy

Artemis UK growth fund manager Tim Steer is planning to start shorting stocks in his £322m fund next month.

He says there are a number of opportunities to short at present with market volatility and macro uncertainty.

He highlights factors such as the proposed Australian mining tax, concerns over the Chinese economy tightening, government spending cuts and unemployment.

He says: “It is an extension of what I do with the fund being long on overseas earners, given slow growth concerns in the UK. This takes it a step further by allowing us to short stocks that, for example, are dependent on government spending.”

Steer says he is unlikely to short more than 10 per cent of the fund. He says the research with IFAs indicated they were keen for him to look at shorting, given his success of running the Gemini hedge fund at New Star.

He says: “The reason why people put money into that is because the alpha created on the short book was as good as the alpha on the long book, even when the market was rising. That was because of our focus on the accounts of companies. If you identify a company with bad accounts and short it, they tend to underperform dramatically when things go wrong.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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