Henderson Global Investors' flagship fixed income hedge fund has returned 23.89 per cent (7.4 per cent annualised) since its launch three years ago.
According to the Eurohedge Fixed Income Index, this compares to a peer group average of 18.29 per cent (5.76 per cent annualised) over the same period. The USD 150 million-fund has also consistently outpaced its peer group in each of the three one-year periods.
Managed by Daniel Beharall, and his team of five, the Henderson Global Fixed Income Absolute Return Fund is a low volatility multi-strategy hedge fund, which draws on the ideas generated by over 50 fixed income professionals at Henderson covering global markets at both micro and macro levels. The fund invests in a wide range of fixed income instruments ranging from G10 government debt to corporate credits and emerging market issues.
'This is a classic, highly active hedge fund that diversifies by blending relative-value and directional strategies and minimises correlation through the use of multiple time frames,' says Beharall. 'Long-run market levels are determined by long-run economic fundamentals, whereas short run market levels are determined by more fluid elements such as supply and demand, sentiment, liquidity, and positioning. It is the interaction and divergence between these two that creates exploitable opportunities for the fund. As a global multi strategy fund we are highly active and it is not unusual for us to conduct 20-30 trades in any one day.'
The fund is part of Henderson's USD 2 billion single manager hedge fund range spread across 12 Hedge funds which are split into four sections: Long short directional equity funds; market neutral funds with a regional focus; Equity Long Short Style Rotational funds; and Fixed Income multi strategy and single strategy.
'Given the success of Daniel's fund, and leveraging the experience of managing over EUR 40bn in global fixed income assets at Henderson, the component parts of this fund will be replicated in single strategy funds,' says Kate O'Neill, Henderson's Director of Hedge Funds. 'In December 2005, we launched the Global Currency Absolute Return Fund, a discretionary, technically driven fund that aims to provide a competitive absolute return with low volatility by taking tightly risk-controlled short-term currency positions.
This model of multi strategy and single strategy hedge funds will provide specialist asset allocators the best means to select the most appropriate component funds to suit their own risk and return objectives.'
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