ALTIN AG, the Swiss and London-listed alternative investment company has announced its final audited investment performance of +8.57% for the year 2005.
During the first four months of 2006, ALTIN also recorded strong performance, with the NAV increasing +11.63% (as at 20 April). ALTIN's share price rose +4.17% in 2005 and in the year to 20 April 2006 rose +16.7%.
'These good results were obtained during a particularly difficult global environment for hedge funds, mainly set off by the crisis provoked by the downgrade of General Motors's credit rating which affected Macro and Convertible Arbitrage funds during the first semester and in general all credit-linked strategies,' reads a company statement. 'The environment was more favourable during the last months of the year, allowing ALTIN to finish 2005 posting good results'.
Since the launch of ALTIN in December 1996, the cumulative performance is145.01% (as at 20 April 2006), resulting in an annualised performance of +9.98%.
These results were obtained with a moderate volatility of only 6.83%, compared with 14.83% for the MSCI World Share Index and 6.86% for the World Government Bond Index SBWGB.
These results were achieved by combining a core of star hedge funds with a diversified group of smaller innovative managers that provide added performance by exploiting new strategies and geographical regions. These strategies allow ALTIN to tilt its portfolio towards strategies that are expected to outperform.
At present, Global Macro strategies represent approximately 26% of the ALTIN portfolio while Long/Short equity funds and Arbitrage/Relative managers represent respectively 43% and 29%.
ALTIN is currently invested in 42 hedge funds, of which 26 (representing some 66% of the assets) are funds closed to new investors. The latter are funds that stop accepting investment when they reach an optimal size to attain their performance objectives. In this regard, the closed end structure of ALTIN constitutes a distinct advantage. Since ALTIN has a fixed number of shares, exposure to these star funds is not diluted by new investors in ALTIN, as would be the case with an open-ended fund of hedge funds.
'Launched in December 1996, ALTIN is now in its 10th year, and has one of the longest track records as a listed alternative investment company,' says Eric Syz, Delegate of the Board of ALTIN. 'Since its launch, ALTIN's excellent results, combined with low volatility, make it a superior long term investment and a useful diversification instrument to improve the overall performance of a diversified portfolio.
'ALTIN was one of the first to detect investor demand for funds of hedge funds in the United Kingdom and, in 2001, become one of the first to be listed. Attracted by its strong performance and daily liquidity, British investors represent approximately 40% of shareholders. London is a very active market for closed end investment companies and ALTIN has developed a solid shareholder base in the UK.' he adds.