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At a glance
Index
3 month GBP Libor
Launch date
Sep 2010
Fund size
£49.3m
Fund currency
GBP
OEICs
Fund Managers
Mark Westwood
Chris Kinder
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UK Absolute Alpha Fund
Threadneedle UK Absolute Alpha Fund utilises the wider investment powers permitted under UCITS regulations. It aims to generate 8-10% p.a. over a market cycle (typically defined as three to five year investment horizon). The portfolio aims to generate a return greater than zero of a 12 month period. The Fund does not offer any form of guarantee with respect to investment performance and no form of capital protection applies. Co-managers Chris Kinder and Mark Westwood both have extensive experience in managing long / short portfolios. Discover more about the fund by viewing the tabs below:
Graph as at 12 noon: 31st March 2012
- Positive absolute returns - by utilising the wider investment powers permitted under UCITS regulations, the Fund aims to generate 8-10% p.a. over a market cycle (typically defined as three to five year investment horizon). The portfolio aims to generate a return greater than zero over a 12 month period. For the avoidance of doubt, the UK Absolute Alpha Fund does not offer any form of guarantee with respect to investment performance, and no form of capital protection will apply.
- Threadneedle has a nine year track record of alpha generation in a similar long / short UK equity strategy.
- Co-managed by Chris Kinder and Mark Westwood, both of whom have extensive experience in managing long / short 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 Mark Westwood |
| Launch Date | October 2010 |
| Index | 3 Month £ Libor |
| IMA Sector |
Absolute Return |
| Annual management charge |
1.50% + 20% performance fee above benchmark |
| Minimum investment | £2,000 |
| Fund Codes | |
| ISIN | GB00B518L045 |
| Sedol | B518L04 |
Absolute return philosophy
The co-fund managers believe that the stock market is influenced by short-term factors. For investors with a contrarian stance, this creates opportunities. The UK Absolute Alpha Fund looks to exploit these situations;
- Having long positions in those undervalued companies which can benefit from a re-rating.
- Having short positions in those overvalued companies which are vulnerable to de-rating.
The Fund will tend to hold positions throughout a period of perception change as the managers believe this is the most efficient way to maximise returns. They therefore take a long-term view to valuing businesses, especially for those businesses offering good total returns (i.e. distribution and capital growth).
Valuation is critical
Risk management - sell discipline and stop loss assessment
Each potential addition to the portfolio is backed by an investment thesis and stock specific risk is assessed during this process. We would review a position and consider closing it if:
- The price target is reached.
- A competing investment opportunity is identified with a more attractive risk/reward profile.
- The investment thesis is undermined.
Whilst there are no formal, automatic stop losses within the Fund at the position or portfolio level, a loss of 10% in absolute terms at the position level will trigger a re-assessment of the position. The overriding risk management philosophy is to "run winners" by adding capital to successful investments while "cutting losers" swiftly when the investment thesis is not supported.
- Mark Westwood
Mark Westwood joined Threadneedle in September 2006 as a fund manager in the UK equities team. He manages the Threadneedle UK Select Fund and the Threadneedle UK Crescendo Fund as well as a number of other high alpha segregated portfolios.
He also has research responsibility for the Industrial Transportation and Telecommunications sectors. He started his fund management career in 1998 with Legg Mason before moving to Morley in 2005. Mark graduated with a BSc (Hons) in materials science from Manchester University.
He also holds a PhD in materials science and is an associate member of the Institute of Investment Management and Research. - Chris Kinder
Fund Profile
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