Cazenove absolute equity is a listed fund of hedge funds that comprises a portfolio of the company’s long/short equity hedge funds.
Premier says the Cazenove fund’s net asset value is at an all time high and its share price is trading at a discount of around 15 per cent. It has been positioned defensively, so did not capture the recent market rally, but Premier stands to benefit if the discount narrows when investor sentiment improves.
Premier has also increased the multi-asset growth fund’s exposure to convertibles, so that the weighting now stands at around 9 per cent.
Fund manager David Hambidge says: “The theme of this is not trying to second guess which way the stockmarket is going. Convertibles act more as a bond and appreciate in a rally.”