Liongate Capital Management’s flagship multi-strategy fund produced a positive return of 0.83 per cent over January while the HFRX global hedge fund index fell by 2.06 per cent.
UK investors can access the fund through the Liongate multi-strategy tracker note.
The company says it is more active than some fund of hedge fund managers so it reduced its exposure to equities to 1 per cent. It says other managers have been slow to do this and may have had too much equity exposure to begin with.
Liongate believes that as its investors, which include high-net-worth clients in the UK, have exposure to equities elsewhere in their investment portfolios, they are looking to Liongate to make money in other areas.
Global macro, fixed income and agricultural commodities are areas that have made notable contributions to Liongate’s performance duringa difficult period for funds of hedge funds in general.
Partner Jeff Holland says: “There is interest in investing in food and agriculture, with the idea of growing demand from emerging markets and constrained supply. We have been playing this theme for some time.
“In the fixed-income allocation we have exposure on the short side to US corporate credit, so as spreads have widened we have benefited.
“Global macro is more volatile than some strategies but it is less correlated to other strategies, so it improves diversity.”