Swiss alternative investment company Altin says that owing to a particularly difficult environment, its management performance in 2008 was predictably negative (-29.20 per cent), yet su
Swiss alternative investment company Altin says that owing to a particularly difficult environment, its management performance in 2008 was predictably negative (-29.20 per cent), yet superior to all key stock market indices.
The company says in light of the losses incurred by world stock markets over the same period, this result is acceptable and hedge funds remain the best performing asset class over the medium term.
Since the beginning of 2009, Altin’s performance is positive (+1.88 per cent), despite a marked correction in equity markets.
The company’s portfolio is devoid of leverage and is currently 22 per cent invested in cash, enabling it to take advantage of the numerous investment opportunities that have arisen of late.
In order to address the issue of its market price discount, the annual general meeting has empowered the board of directors to reduce the capital of Altin by buying back five per cent to ten per cent of its own stock. The board of directors has approved a capital reduction programme in the form of the repurchase by Altin of its own stock by means of a second trading line.
Altin informed the market of the reduction to zero of its portfolio’s leverage, and disclosed its entire portfolio holdings. As a result, the price discount shrank significantly from 33 per cent at the end of 2008 to 28 per cent today. It says the normalisation of market conditions and satisfactory relative results achieved since the beginning of 2009, combined with the announced capital reduction, should enable Altin’s stock market price to move closer to the company’s NAV.
In its choice to avoid the illiquid strategies that have caused the closing of a number of hedge funds, Altin’s manager has been favouring liquidity since 2007. This explains the portfolio’s increased sensitivity to stock-market movements; yet it also enables the company to be significantly invested in cash today (22 per cent). The company says this in turn will enable Altin to launch a significant investment programme in the near future aimed at taking advantage of the considerable buying opportunities currently provided by market price discrepancies.
