Caerus Portfolio Management was established last year as a subsidiary of Caerus Wealth Group. It selects third-party fund managers to manage its funds according to a specific level of risk and has chosen Odey Asset Management as investment adviser for this new fund.
The fund was designed by investment consultant Allium Capital, a firm that will monitor the fund to ensure it remains within the specified level of risk tolerance. The fund aims for growth by investing mainly in a diversified portfolio of UK and European equities. It can also invest in derivatives for long and short exposure, and other securities such as government and corporate bonds. Fund manager Peter Martin also has some leeway to invest outside Europe and the UK.
The portfolio will be high conviction, investing only in companies where Martin believes strongly in their potential for returns. It will contain 30 to 50 holdings.
Caerus says Odey was the obvious choice for investment adviser. Odey is an active manager with a strong focus on risk and return. It believes that active asset allocation is the main driver of returns in a portfolio. Its managers are free from benchmark constraints but with this fund, Odey must remain within a volatility target.
Odey looks for undervalued companies where there is a potential for change and where after assessing the risks, the outlook looks promising. It will look for investment opportunities that have been missed by other investors and will invest in discounted companies and unpopular sectors as they return to favour. This approach enables them to hold positions that go against the market consensus.
New fund management groups often need to build a name for themselves before attracting business from IFAs, but the appointment of Odey should make this less of a problem for Caerus.ate Last day