SVM Asset Management, the Edinburgh based independent fund management group, says its SVM Highlander Fund returned 21.1 per cent in 2008 in euro terms, compared with a fall of 43.3 per
SVM Asset Management, the Edinburgh based independent fund management group, says its SVM Highlander Fund returned 21.1 per cent in 2008 in euro terms, compared with a fall of 43.3 per cent for the MSCI Europe total return index in euros over the same period.
Highlander is a pan-European focused long/short equity fund. Employing a variable bias strategy, Highlander has an emphasis on stock alpha on both the long and short sides.
Colin McLean (photo), who has over 15 years experience in managing long/short portfolios, is the lead manager.
‘In 2008, we used our stock picking skills to significantly outperform European equity markets at a time of extreme volatility and market uncertainty,’ McLean says. ‘The fund portfolio was positioned net short throughout the year. In the first half of 2008, the portfolio’s key short positions were in banks, property and construction companies. The long book favoured resources, telecoms and selected utilities.’
He says that in the second half of the year, the portfolio’s shorts were focused at European industrial companies, property companies and UK consumer facing businesses. Long positions emphasized defensive stocks such as pharmaceutical and insurance companies.
‘As we enter 2009, we are seeing considerable investor interest in Highlander as hedge fund investors actively seek funds like Highlander with a simple, clear investment process, transparency and regular liquidity,’ McLean adds.