Eddington Capital Management, a manager of high return target funds of hedge funds, has reported a 2.37 per cent net return for its London Listed Index Linked Note since its launch on April 30. The note, issued by Nomura Bank International with a five-year term, is designed to be treated as an asset subject only to capital gains tax in the UK.
'We are delighted that the Nomura Eddington note provides our UK clients with access to the Eddington fund range in a convenient and tax-efficient way,' says the firm's chief executive Glenn Baggley.
The note currently gives exposure to two Eddington funds, currently invested 80 per cent with the Eddington Triple Alpha Fund, a diversified multistrategy fund of hedge funds focused on delivering high returns without using leverage at the portfolio level, and 20 per cent with the Eddington Macro Opportunities Fund, a moderately concentrated portfolio of macro-related strategies.
'The note enjoyed a strong run throughout its first month, significantly outperforming fund of hedge fund indices,' Baggley says. 'Both components are in positive territory, with the Triple Alpha Fund up an estimated 2.03 per cent net and the Macro Opportunities Fund an estimated 3.88 per cent.
'Most hedge fund strategies were up for the month, led by long-short equity, event driven and discretionary macro. The Triple Alpha Fund made money in all those areas, particularly in funds with commodity exposure, and additionally in systematic macro and currency funds.
'The Macro Opportunities Fund also showed strength across the board, with the strongest gains through equity and commodity exposure. In particular our long/short equity futures manager produced outstanding returns this month. We are confident that the note is extremely well positioned to deliver continued strong returns despite these volatile market conditions.'