The Fitzwilliam growth fund was ranked the best performing fund of hedge funds in a BNY Mellon analysis of performance and risk for pooled pension funds. The report, which is sent to all UK pension trustees, has various categories including longonly funds, funds of funds and hedge funds of funds. It ranks the Fitzwilliam fund first in the hedge fund of funds category over one year and three years to March 31, 2008.
BDO Stoy Hayward Investment Management says the fund, which was launched in 2003, has performed well at a time when some funds of hedge funds have been affected by dips in performance as the underlying investment strategies have struggled during market uncertainty. The company says many funds of hedge funds take a bottom-up approach but the top-down analysis of the Fitzwilliam fund has led it to invest in niche markets that can outperform.
Hedge fund analyst Matthew Towsley says: “The BNY Mellon rating says to trustees that the fund can deliver. It is the best performing fund in hedge fund of funds category and that performance is due to the way we structure the fund. We take a macro view of the world and look at niche markets. For example, we invested in Africa in 2006. Africa is popular now but it was not on people’s radars then and we invested in pan-Africa, not just South Africa.”