A conservative UK equity long/short strategy with a target return of LIBOR +4%, whilst delivering positive rolling 12 month returns, low volatility and low correlation to UK equities. The gross exposure typically ranges from 100% to 140%, with net between 10% and 40%. Since inception, the fund has delivered attractive risk adjusted returns, with low volatility and low correlation to wider UK equity markets. Given the relative lack of options in the UK long/short space, a fund with a consistent, absolute return based approach, and established track record such as this is certainly deserving of closer attention.
A high conviction long/short North American equity strategy, with a bottom up, value based approach and a long-term view. Run with a concentrated, 20-25 position long book and a more diversified, 40-60 position short book, with net exposure typically between 30-75%. Genuinely differentiated long/short strategies are few and far between in the UCITS space, particularly in the US-focussed sphere, which is underpopulated by credible managers. In our opinion, the BANOR SICAV North America Long Short Equity fund makes an interesting option for return seeking investors who have a tolerance for some volatility.
A pan-European long short equity strategy managed by Mike Buhl-Nielsen and supported by Tommy Kristoffersen. The fund employs a bottom up, active approach to stock picking on the long side, combining it with short side exposure management implemented by shorting stocks and an actively managed options strategy. Since manager inception, the fund has returned 5.0% per annum with a volatility of 5.0%. The correlation and beta to the MSCI Europe has been 0.61 and 0.28 respectively. As such, the fund presents an interesting option in the European L/S space, stacking up well compared to peers.
An equity market neutral strategy using five underlying stock selection strategies to forecast returns across a 3,500 stock universe covering US large cap, US small cap, Canadian, and selective LatAm exposure. The five underlying strategies fall into two main clusters, Fundamental and Mid-Horizon, with four of the five strategies each contributing positively over the life of the fund. Since launch in 2012 the fund has annualised at 4.4% with a volatility of 5.7%, though importnatly for a market neutral strategy, the track record shows no correlation to equity markets.
Smith & Williamson Enterprise
BANOR North American Long Short Equity
BlackRock Americas Diversified Equity Absolute Return
AH UCITS Index
|AH Global Index||-0.62||0.4||-0.6||1.9||3.6|
|AH Credit Index||-0.51||0.3||-0.2||0.6||1.5|
|AH Equity Long / Short Index||-0.55||0.4||0.2||4.9||6.9|
|AH Event Driven Index||-1.25||0.1||-0.9||-0.1||1.5|
|AH FX Index||-0.96||-0.5||-1.3||-4.1||-3.8|
|AH Macro Index||-0.73||0.4||-0.2||1.0||1.7|
|AH Managed Futures Index||-1.22||0.3||-2.8||-0.3||2.6|
|AH Market Neutral Index||0.29||0.5||0.1||0.6||1.4|
|AH Multi Asset Index||-0.85||0.9||-1.9||2.0||6.2|