RiverCrest Capital, the absolute return fund management business established by Sir John Beckwith’s (pictured) Pacific Investments in 2011, has rolled out its second offering with the launch of the European Equity Alpha Fund.
The Fund’s objective is to achieve consistent and uncorrelated absolute returns of 12-15% (net of fees) with a target volatility of 5 – 8%, whilst preserving investor capital. The European Equity Alpha Fund is UCITS registered and operates via Morgan Stanley’s FundLogic Alternatives Platform.
The Fund is managed by Giles Worthington and Tim Short, who each have over 16 years’ experience in the European equity market, with Giles latterly as Head of European Investments at M&G. Tim Short also joined from M&G, where he was a fund manager and Head of Portfolio Strategy and Risk Management. The investment process was developed and incubated by the managers whilst at M&G, they then joined RiverCrest specifically to focus on this absolute return strategy. The key features are:
The marriage of a proven stock-picking capability with capital preservation at the portfolio level. The fund has a unique combination of alpha generation from stock selection both on the long and short side and risk control which removes systematic risk from the portfolio.
Market leading risk control systems are used to navigate extremes of market volatility and macro-uncertainty, enabling positive returns in all market conditions.
The strict risk framework and daily real time risk management ensures objectivity and consistency of stock selection with uncorrelated absolute returns.
Rod Barker, CEO of RiverCrest Capital, says: “The sustained period of high market volatility and high correlations has proven to be a very challenging environment for absolute return investing. As such we are seeing significant investor demand for a product capable of achieving consistent double digit returns whilst importantly preserving capital. The RiverCrest European Equity Alpha Fund is a strategy which maximises intended outcomes and minimises unintended outcomes and as such has proven an ability to perform in these challenging markets. We are delighted to offer our investors access to this approach through the launch of this Fund.”
