SYZ Asset Management, manager of the Altin-listed fund of hedge funds, believes that the management style of a hedge fund is more important this year than selecting funds based on which strategies are doing well.
SYZ believes the underlying managers’ decisions about when to take profits and when to be prudent will have a greater impact on Altin than holding a fund just because it is following a strategy that appeals to SYZ.
Results for the first half of 2011 show that Altin slightly underperformed the HFRI Fof composite index and MSCI World hedge fund index due to its defensive positioning but has significantly outperformed both indices since launch in 1996.
SYZ continues to prefer liquid and trading strategies, which have worked well for Altin this year. Concerns about sovereign debt in the Eurozone re-emerged in July followed by the raising of the US debt ceiling and subsequent downgrading of its credit rating by S&P, which left investors wondering whether a crisis similar to 2008 was likely. For SYZ, this was not the time to invest in illiquid strategies.
The firm has recently been increasing its exposure to highly liquid commodity trading advisers. This involves trading in commodity, futures and foreign currency markets and has very short or no lock-in periods.