View more on these topics

Bloxham fund is eight years in the making

Irish equity specialist Bloxham has created a global absolute return fund that identifies potential long and short positions using technology developed over eight years.

The firm’s Midas global absolute return fund aims for a return of at least 8 to 10 per cent a year with a third of the volatility of the S&P 500 index, which represents equity markets in general. Midas is a quant system that identifies overbought and oversold stocks with a global universe of over 2,000 stocks,  along with emerging trends that occur when a stock breaks out of its usual trading range.

Midas is an improved version of an older quant system developed in 2003, which unable to detect the movement in stock prices from oscillation to trend. Oscillation is the term Bloxham uses to describe the period when stocks move within a trading range close to fair value. Trend refers to changes in the factors affecting a stock price resulting in an upward or downward trend that leads to a new fair value price.

Bloxham believes a ‘black box’ approach, where funds are driven by computer models with little or no human intervention, does not work. It has four fund managers interpreting the data produced by Midas to create the portfolio with an awareness of the global economy. The fund will also have high cash weightings of 30 to 100 per cent, depending on market conditions. Bloxham says this will reduce volatility, as it believes 100 per cent participation in equity markets can be dangerous during periods where liquidity is scarce.

Bloxham’s equity holdings will comprise 25 to 40 stocks,which will be assessed in terms of risk and reward. Stop losses will be used to automatically sell positions that are working against the portfolio once the stock price gets to a certain level.

Bloxham believes its combination of technology and high cash weightings gives it the edge over other absolute return funds that have underperformed. However, it may take time for Bloxham to win over some advisers, as its use of a sophisticated technical analysis through Midas could be difficult to explain to clients.


Helvetia Wealth acquires Scottish IFA

Swiss and Leichtenstein-based asset management firm Helvetia Wealth has acquired Scottish IFA Dunedin Independent. Dunedin launched in 1994 and specialises in providing bespoke investment management to high net worth investors across the UK. The firm has £350m of funds under management and has approximately 30 employees. Following the deal, chairman and majority shareholder, Mark Emlick, […]

IFP will have tough task getting cap-ad rethink

Institute of Financial Planning chief executive Nick Cann bel-ieves the IFP faces a big task in getting the FSA to ease its new capital adequacy requirements for financial planning firms. Last November, the regulator announced that all IFAs will have to hold capital worth at least three months of their annual fixed expenditure, with the […]

European bailout is not working, says Pimco

The assistance being given to the peripheral, debt-laden countries of Europe is not working, according to Pimco. In a post for the Financial Times, Pimco chief executive Mohamed El-Erian warned that the European Central Bank/International Monetary Fund aid handed to Greece, Portugal, Spain and Ireland have not aided their economies, rather just aided those looking […]

Scheme pays explained

By Fiona Hanrahan, senior product insight and technical support analyst We’ve received lots of queries on scheme pays and when it can be used. This article explains how it works and the conditions which apply. What is ‘scheme pays’? If an individual exceeds the annual allowance (AA) and an AA tax charge is due, they […]


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