The investment objective of the Fund is to generate absolute returns, investing in long and short positions in transferable securities, mainly equities and equity-related securities admitted to or dealt in on a Regulated Market in Europe. The short positions will only be taken via derivatives. The investments in this Fund will be made using a focused investment style. Our investment philosophy is centred on identifying changes (Delta), whether long- or short-driven. We look for companies, industries and securities undergoing transformational change which trigger a revaluation of the security. We have a diversified set of tools at our disposal to take advantage of mis-pricings created by deltas/events and our tailor-made hedging approach limits volatility and contains downside risk.
Beta management is of significant importance for the fund. As our strategy is broadly beta-neutral we manage our positions on a beta-adjusted basis, both upon initiating new strategies but also in the daily portfolio management. The beta management is done through a bottom-up process, on a strategy by strategy basis. Relative Value trades are hedged fully on a beta-adjusted basis while Outright longs and shorts will add or subtract beta to the book.
The leverage of the Sub-Fund is not expected to exceed 150%. Usually the expected level of leverage is 80-120%. The level of leverage may vary over time. Leverage is measured by using the sum of notionals approach.