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Moonraker says smaller is better

Fund of hedge fund manager Moonraker Fund Management says it prefers to invest in small funds where the biggest investor is the fund manager.

The company marked the first anniversary of its commodities and global opportunities funds by outperforming its benchmarks by 60.5 and 22.9 per cent respectively. The sterling share class of the commodities fund delivered 19.3 per cent net of charges over the year to June 1, 2009 while its benchmark, the DJ AIG commodity index, was down by 41.2 per cent. Global opportunities delivered 1.7 per cent net of charges over the same period while its benchmark, the HFRI FOF strategic index, fell by 21.2 per cent.

Chief investment officer Jeremy Charlesworth says the funds launched with less money than Moonraker would have liked but the resulting concentrated portfolio helped performance when market conditions worsened. He says: “We like smaller, nimbler funds from highly experienced managers. In small funds, the biggest investor is the manager so he will suffer as we do if the portfolio does not perform.”

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