Change your profile from a 
At a glance
Index
FTSE-A All Share
Launch date
Jan 2003
Fund size
£17.8m
Fund currency
GBP
OEICs
Fund Managers
Chris Kinder
Download fund sheet >
UK Extended Alpha Fund
The Fund aims to achieve above average capital growth from a concentrated portfolio of UK equities and it has the flexibility to take significant stock and sector positions which may lead to increased levels of volatility. The Fund will maintain a positive market exposure and to increase the potential for outperformance, it will look to take both long and short exposure to UK equities. Discover more about the fund by viewing the tabs below:
Graph as at 12 noon: 31st March 2012
- Increased potential for outperformance by taking both long and short exposure to UK equities whilst maintaining a positive equity market exposure.
- Managed by Chris Kinder who has extensive experience in managing UK equity portfolios.
- Well resourced investment team - Threadneedle's UK equity team consists of 11 portfolio managers who operate within Threadneedle's wider team of more than 100 investment professionals.
- Comprehensive UK equity range - the Fund is part of a UK equity range that offers options from large-cap core holdings to equity income and specialist funds.
| Co-fund Managers | Chris Kinder and Simon Haines |
| Launch Date | December 2010 |
| Index | FTSE All Share |
| IMA Sector | UK All Companies |
| Annual management charge | 1.25% plus 20% performance fee above benchmark |
| Minimum investment | £2,000 |
| Fund codes | |
| ISIN | GB00B02QB917 |
| Sedol | B02QB917 |
What does this Fund do?
The Threadneedle UK Extended Alpha Fund is combination of a long-only portfolio and a short portfolio - the proceeds of the short portfolio are used to 'extend' the Fund's long positions. The Fund aims to be fully invested and to keep a net market exposure of 95 to 105% at all times.
The ability to adopt short positions (i.e. to borrow and sell a stock without owning it to benefit from a subsequent price fall) allows the co-managers to take a more aggressive negative view on particular stocks than would be possible in a long-only fund, increasing the opportunity to outperform. As a result, the impact of stock selection on performance in this fund is more important than in funds that closely match their benchmark.
While the co-managers adhere to UCITS III restrictions as well as internal guidelines on sector exposure and position sizes, the Fund is less constrained than a traditional long-only fund. As a result, the managers have more leeway to put capital at work where their conviction is the greatest.
Investment process
The co-managers aim to ensure that every stock, on both the long and short side of the portfolio, contributes to returns. The co-managers believe that the stock market is influenced by short-term factors which create opportunities for investors with a clear view of a business' worth. The UK Extended Alpha Fund looks to exploit these situations by:
- Having long positions in fundamentally strong yet undervalued companies which can benefit from a re-rating.
- Having short positions in overvalued companies with weakening fundamentals which are vulnerable to being de-rated by investors.
Fundamental research is the cornerstone of our process
In managing this fund, the co-managers receive the support of Threadneedle's 11-strong UK equities team. The team dedicates a large amount of time and efforts to analysing UK stocks, through considering their fundamentals, business and financial models, and what they are worth. This analysis results in explicit price targets being assigned to opportunities as well as a quantification of the downside risks involved.
- Chris Kinder
Chris is an assistant fund manager in Threadneedle's UK high alpha team. His main responsibilities are the co-management of the Threadneedle UK Absolute Alpha Fund and the Threadneedle UK Crescendo Fund, analytical input to a number of high alpha mandates, coverage of the banking sector and idea generation for the wider UK equity team. Prior to joining Threadneedle, Chris was an assistant fund manager at RWC Partners.
Fund Profile
View our UK Extended Alpha Fund Profile - more >
Fund Factsheet
View our UK Extended Alpha Fund Factsheet - more >
UK Equity Range Brochure
View our UK Equity Range Brochure - more >
Fund Application Form
View our Fund Application Form - more >
ISA Transfer Pack
View our ISA Transfer Pack - more >
ISA Application Form
View our ISA Application Form - more >