Matrix Group is celebrating the two year anniversary of the Matrix Asia Fund managed by Rupert Foster.
Launched in August 2008, it has outperformed the MSCI Asia Pacific Index by 55.6 per cent and has returned 52.70 per cent up to 6 August 2010.
This performance, both relative and absolute, has also been achieved with around three-quarters of the volatility of the index.
Foster has 16 years’ experience in managing Asian long/short dated funds.
The fund’s long/short strategy aims to reduce risk by targeting a lower level of volatility.
In May 2010, Matrix launched its first Ucits III fund, the Matrix Asia Ucits Fund, which has a similar investment objective to the Matrix Asia Fund.
Both funds are able to rotate actively between China and Japan (which account for 70 per cent of the market capitalisation of the Asian Stock exchanges) to best capture their respective stages of their economic cycles.
Foster says: “Having a long/short pan-Asian investment remit is very important to me as it gives me the ultimate tool kit to deliver outperformance for my clients. Our central view remains that China is in a mid-cycle correction and that by September/October it will become clear whether they have under tightened or over tightened. At this time, I expect to rotate my current portfolio positioning to being long China and short Japan. We are watching all consumer data to assess this, focusing very much on low/mid end consumption data rather than luxury data. We remain of the view that any noticeable worsening of global growth expectations will bring a reaction from Beijing; our favourite bet remains a much expanded affordable housing scheme, which we think will be announced in the government’s new five-year plan in October. That said a 15 per cent to 20 per cent fall in house prices over July and August may well be enough to engender a relaxation of the new controls in the property sector.”