In order to achieve its target net return of 20% or more, the fund will uses leverage, with a gross exposure of up to 300%. It typically adopts a concentrated approach to stock selection.
The risk parameters allow the net exposure to range between 100% short to 100% long. While the managers may at times take sizeable short-term directional market views, the majority of the returns over time are derived from stock and sector exposures.
The focus of the strategy is to identify near-term catalysts
The week on Risk.net, October 6-12, 2017Receive this by email
- Quantile, TriOptima face off in cleared swaps compression battle
- ABS set for revival under US Treasury’s liquidity buffer plans
- Leaked EU doc could shield legacy swaps from clearing grab
- Industry hails potential US relaxation of margin timing rules
- SGX, HKEX expect to be among first wave of Mifid II equivalence