The ALTIN portfolio generated positive returns over the first half of 2015, according to the Swiss Alternative investment company’s results statement for the six months ended 30 June.
The period was characterised by seesaw markets, unstable correlations and no clear trends as well as a renewed focus on central banks’ actions and the Greek crisis. Despite this difficult context, the relatively good level of securities’ dispersion and corporate activity led most hedge fund styles to post positive returns for the period, with Equity Hedge leading the pack. The only exception was Macro, which was affected by trend reversals as well as several spikes of volatility that disrupted trades with a mid-term horizon.
The portfolio did particularly well during most of the period, being positive whatever the direction of markets in every one of the first five months of the year.
In June the portfolio gave up some of its gains due to a combination of two distinct events: first, a synchronised and counter-trend correction in bonds and equities and secondly an accelerating rise in risk aversion as investors witnessed the gradual and dramatic collapse of the Greek bailout talks. The best contributors over the period were clearly to be found amongst equity managers, whether market neutral, specialist or event-driven. The worse contributor was a systematic macro fund, followed by two discretionary macro funds.
Overall, the portfolio saw, month-by-month and over the period, a high level of dispersion of returns amongst managers, which underlines the robustness of its construction. For the YTD to end July 2015, the portfolio recovered to post an NAV return of +4.29%, outperforming the HFRI FoF Composite Index, which returned +2.98% over the same period.