View more on these topics

Gartmore follows up absolute returns

Gartmore has brought out a UK absolute return fund hot on the heels of its European absolute return fund.

The UK fund aims to provide positive returns regardless of market conditions by taking long positions in UK companies and synthetic short positions using equity related derivatives such as swaps and futures. It will provide retail investors with access to the long and short investment skills of Gartmore hedge fund manager Ben Wallace for the first time.

Wallace joined Gartmore in 2002 after five years at Deutsche Asset Management. He moved away from long only funds in 2005 to focus on absolute returns and has managed Gartmore’s AlphaGen Octanis hedge fund since launch.

Octanis has a strong bias towards FTSE 100 companies and blends core ideas with tactical opportunities. Since launch until the end of February, it returned 81.9 per cent, while the FTSE All Share index was down 11 per cent over the period.

Last year, when many hedge funds struggled, Octanis delivered 29.4 per cent while the FTSE All Share fell by 30 per cent. Gartmore says this illustrates the manager’s ability to use shorting techniques succesully, but points out that as the fund is not a hedge fund, it will not be able to short stocks directly so its performance may differ from AlphaGen Octanis.

Wallace will run the new fund on a bottom-up basis where positions are taken as a result of stock picking. Core holdings will provide the long-term strategic views of the manager, while short-term tactical plays will be used to enhance returns.

Absolute return funds are flavour of the month and the potential for positive returns regardless of market conditions should appeal to investors when equity markets are volatile.

However, this fund’s success depends on Wallace’s ability to use shorting techniques within the Ucits III framework, with less freedom than his hedge fund.

Recommended

FTSE rally fizzles

The FTSE 100 opened lower today at 4,238 as some of London’s equities lost their steam following news that US bank stress tests would be delayed.

3

Supermarket Sweep

Friends Provident’s decision to extend the reach of its protection distribution by teaming up with supermarket giant Tesco has added more pressure on the adviser community.

Rules of rentback

The FSA and Treasury recently announced the statutory regulation of the sale and rentback market.

Artemis Global Income: favouring Europe over the US

With a 10 per cent return from his Global Income Fund in the first three months of 2015, Jacob de Tusch-Lec talks to journalist Alexis Xydias about the drivers and why he favours Europe and Asia over the US. Jacob believes European companies remain cheap and is still finding opportunities amid value stocks – in contrast […]

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