IAM Black and White Innovation UCITS Fund

Investment Objective

The Fund’s investment objective is to generate superior risk-adjusted returns by seeking to identify investment opportunities that can generate alpha regardless of market direction. The research effort is focused on both traditional areas of TMT (technology, media and telecom) as well as adjacent non-TMT sectors where technology’s impact will enhance some business models through innovation or challenge others through disruption. The Fund will typically hold between 50-70 positions and exposures will generally range from 140%-200% gross and -25% to 25% net. The geographic exposure of the Fund will be primarily North America with modest exposure in Asia and Europe.

Latest Meeting Note

Meeting 27 Apr 2020

Los Angeles based, Black and White Capital was founded in 2016 by Seth Wunder and currently manages approximately $712m. Seth has 20 years of buy side-experience, previously as co-founder and co-portfolio manager at Contour Asset Managem... Read more

Los Angeles based, Black and White Capital was founded in 2016 by Seth Wunder and currently manages approximately $712m. Seth has 20 years of buy side-experience, previously as co-founder and co-portfolio manager at Contour Asset Management which launched in 2010. The Black and White Innovation UCITS Fund looks to invest long and short in companies where they see an impact of technological innovation on company-specific fundamentals, and to determine how this innovation creates winners and losers. The primary focus is within traditional areas of TMT (2/3 of the book), with the remainder made up of adjacent non-TMT industries impacted by technology and innovation. The targeted investment period is between 12-24 months, with the book predominately US focused with modest exposure to Europe and Asia. The fund has produced strong long and short alpha across its track and has provided downside protection during more challenging market environments (eg Q1-2020; returned just shy of 4% with very strong short alpha driving performance, the portfolio was run with an average net of 6.5% across the quarter). Risk management is central, and the PM uses a dynamic process, aiming to maintain a consistent level of annualised portfolio volatility. At a stock level, positions are only added once each idea is analysed on a risk/reward basis and how ideas stack up against consensus expectations. Upside vs downside return, position liquidity, and analysis of fundamental risks determine position sizing. In general, net exposure ranges between +/- 20% in the UCITS and is influenced by systematic risk, macroeconomic expectations and market-based volatility. At a portfolio level, the PM maintains an option overlay which is continuously reevaluated in assessing idiosyncratic, systematic, and factor / sub-sector risk.

Performance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
2019 0.9 0.4 0.7 0.9 0.4 0.0 0.9 0.4 0.8 0.3 0.1 0.2 1.0
2018 0.3 0.2 0.9 0.1 0.1 0.6 0.9 0.9 0.0 0.5 0.9 0.4 0.0

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