After a period of “risk on” in the first quarter of 2012, the second quarter proved to be the complete opposite, says Altin, the Swiss alternative investment company listed on the London and Swiss stock exchanges.
The future of the Euro and even the solvency of certain banks were again questioned by the markets throughout the volatile quarter. As a result, fears regarding solvency issues in Europe spread and resulted in downward pressure on growth prospects globally.
The event driven silo saw the completion of the rotation of managers initiated at the end of the first quarter. The allocation to event driven managers was increased back up to 11.45 per cent from 3.25 per cent, as a core position in LAMP Funds (Ire) 1 plc – LAMP JANA Partners Fund was completed.
The macro silo was reduced from 24.29 per cent to 20.30 per cent as one manager, Banyan Capital Fund, was redeemed.
The managed futures silo was also reduced from 2.07 per cent to 1.27 per cent. The relatively new allocation to interest rate strategies was increased from 4.83 per cent to 8.68 per cent. A 3.31 per cent position was implemented in EMF Fixed Income Fund. This fund takes no duration risk and arbitrates various interest rate related securities.
The allocation to convertible bond strategies was increased to 8.57 per cent as a 3.28 per cent position in Aristeia International was implemented. The additional manager is currently focused on the special situations space within the fixed income space as the fund sees significant catalysts in the short to mid-term within this credit sub-strategy.
The multi-strategy silo was temporarily reduced as Hayman Capital Offshore Partners was redeemed to rotate into LAMP Funds (Ire) 1 plc LAMP Hayman Capital Fund in July.
Altin’s portfolio continues to have a majority of investments with a redemption frequency term of three months or less.
