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Thames River flows into Tybourne

Thames River Capital has brought out a long/short European mid-cap equity fund, the Thames River Tybourne fund.

This hedge fund will be managed by Thames River’s European equity team headed by Tony Zucker, with Chris Wright as lead manager.
Wright joined Thames River Capital in October 2004 as a fund manager and has been managing the European mid-cap element of Thames River’s Kingsway fund since 2005.

He has 22 years’ investment experience including four years at Collins Stewart where he specialised in European mid caps. He has also worked for ABN Amro, BZW Securities the British Airways pension fund and National Provident Institution.

Although the Tybourne fund has a European mid cap focus, Wright has the flexibility to occasionally invest in larger and smaller companies if it will enhance the returns.

Thames River launched this fund to take advantage of inefficiencies within the European equity market. The manager aims to profit from changing market conditions by paying close attention to a range of factors such as valuation and revisions of earnings forecasts that the manager believes are more likely to indicate the subsequent direction of share prices than initial earnings forecasts.

Wright and his team will screen around 1,000 mid caps, identifying value rather than growth stocks and looking at factors that indicate there is likely to be a change in the industry or share price. The screening process enables a shortlist of stocks to be created, which will form the basis of both the long and short positions within the portfolio. Hedging and derivative strategies may also be used to enhance the returns and limit the downside.

Despite a good start to the year, European equities markets have suffered a recent setback due to concerns about rising interest rates and the slowing of economic growth. Mid caps have been outperforming bigger companies but the gap in terms of valuation is closing, which may mean blue chip companies are more attractive. However, this short-term volatility may be fertile ground for this hedge fund due to its ability to go short.

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