The improvement in market dynamics and the reduction of tail-risk, coupled with a very appealing opportunity set, means that Altin, the USD250m multi-strategy fund of hedge funds, is starting to invest in less liquid strategies with higher expected returns.
This allocation shift has already started to take place gradually.
Altin believes there are very interesting opportunities in credit long/short and event-driven, especially in Europe where corporate activity is expected to increase and banks will be required to deliver.
Since inception in December 1996, Altin has returned +162.64 per cent compared to +114.17 per cent for the HFRI FoF Composite Total Return Index USD.
A significant number of funds have been redeemed whilst new allocations have also been opened as follows:
Macro Strategy – Since the previous quarter allocation as at 1st October 2012, the Macro Strategy allocation has increased from 17.13 per cent to 22.12 per cent as new positions were opened in AlphaMosaic SPC - SP 23 Rosetta Capital Management LLC - Composite Program 2.5X; Omni Macro Fund I Ltd and The Tudor BVI Global Fund Ltd.
Managed Futures Strategy – The allocation to Managed Futures Strategy has increased from 1.29 per cent last quarter to 3.05 per cent this quarter with the inclusion of LAMP Funds (Ire) 1 plc - LAMP NuWave Combined Futures Master Fund; LAMP Funds (Ire) 1 plc - QIM Global Fund; and LAMP Funds (Ire) 1 plc - Welton Global Directional Portfolio GDP Master Fund.
AlphaMosaic SPC - SP 73 Blackwater Capital Management LLC Global Program 2X is no longer included in the portfolio allocation.
Equity Long/Short Strategy – The Equity Long/Short Strategy allocation has decreased from 30.64 per cent last quarter to 12.08 per cent this quarter as Sprott Offshore Fund Ltd; Scopus Vista Fund Ltd and Scopus Fund Ltd were taken out of the portfolio. No new additions to the portfolio were made.
Equity Long Bias Strategy – A new Equity Long Bias Strategy portfolio has been opened with an allocation of 6.15 per cent, consisting of a reduced positions in Arrow Offshore Ltd (previously in Equity Long/Short Strategy), and new allocations to Golden China Fund and Value Partners China Greenchip.
Interest Rate Strategy – The interest Rate Strategy allocation has decreased from 8.92 per cent to 6.41 per cent as the exposure to Providence MBS Offshore Fund Ltd was reduced by 2.51 per cent Protection Strategies – The allocation to Protection Strategies allocation increased slightly from 4.47 per cent to 4.68 per cent, with the inclusion of LAMP Funds (Ire) 1 plc - LAMP Conquest Customised Macro Master Fund. The allocation of the existing position in LAMP Funds (Ire) 1 plc - Capstone Convexity Fund has slightly decreased.
Equity Market Neutral Strategy – The Equity Market Neutral Strategy allocation has slightly increased from 4.03 per cent to 4.74 per cent with the addition of Atlas Leveraged Fund Ltd.
Event-Driven Strategy – A position was opened in York European Opportunities Unit Trust, bringing the Event-Driven Strategy allocation up from 11.50 per cent to 13.80 per cent.
Multi-Strategy Funds – The Multi-Strategy Funds allocation has increased from 13.24 per cent to 18.82 per cent with new positions in QVT SLV Offshore Ltd; QVT Special Investment Offshore Fund Ltd; Stratus Feeder Ltd 1.5 Leverage and The Segantii Asia-Pacific Equity Multi-Strategy Fund.
Altin is highly diversified, investing in over 35 hedge funds focused on highly liquid strategies.