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Octopus Investments launches European Absolute Return Fund

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Octopus Investments has launched the IM Octopus Absolute European Fund, the third in Octopus’ family of absolute return funds.

The fund is being managed by Thierry Serero (pictured) whose appointment was announced in April 2010. Trading in the fund will begin on 14 June 2010.
Coinciding with the build up to the World Cup, Octopus is waiving the initial fee on any investment received into the fund during the first few weeks of the fund’s existence. This offer will continue for as long as England or France continues to play in the tournament.
The fund aims to achieve a positive absolute return for investors in all market conditions, with lower volatility than the market. It is focussed on maximising the alpha component – value created purely by the fund manager – and will be measured against an absolute return objective using a cash benchmark, not relative to the market.

Serero will concentrate on stock picking and identifying special situations investment opportunities. The aim is to achieve a low correlation with the market and other European funds.
Serero says: “I think this a perfect time to start trading a European absolute return fund. The recent movements in the European markets provide me with a number of stock picking ideas and, while underlying trends may look distorted at present, I believe I have a clear idea where the long-term value really lies. As we are launching the fund during the World Cup period, we felt it was fitting that my team, France, and England should feature in the offer to investors. I am sure this period will last right up until the final match, with France emerging victorious, of course.”
Lothar Mentel, chief investment officer of Octopus Investments, adds: “Octopus has an original approach to absolute return investing, encouraging a diversified portfolio strategy rather than an asset-class based approach. We believe that single manager absolute return funds can best add value in one of two ways. First, by generating an alpha component within a long only, core-satellite investment approach for a more cost effective portfolio (combining a tracker-type beta investment with a concentrated alpha investment). Second, as less correlated constituents within diversified pure absolute return portfolios. Investors in the European fund can gain access to our sector expertise, Thierry’s experience and track record, and the significant opportunities within the European market at the moment.”

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