Octagon Pan

Fund Investment Objectives

Octagon Pan Asia Fund is a directional long/short equity fund that invests across Asia (including Japan, Australia and India), covering 15 markets, 2,000 stocks and across all market capitalisation levels. Its investment philosophy centres on four principles: to exploit breadth of opportunity set; focus on identifying market expectations; rely on return asymmetry and; employ strict defense mechanisms. The investment process is driven by a trend-following model, premised on the assumption that in a large and heterogeneous universe, odds are that there exist trends that can be profitably capitalised on. Accordingly, the model seeks to identify, based on a proprietary momentum measure, the best trending stocks to be bought and sold at any time. Some qualitative judgment is used in portfolio construction and execution, in view of the implementation constraints in Asia. Risk management is supported by an in-house risk and performance attribution system. Risks are comprehensively controlled at the stock, sector, country and portfolio levels, both on the long and short sides, using stop-losses and exposure limits. The fund's gross exposure is not expected to exceed 180%. Net exposure will range from -40% to +100%. AUM reflects the aggregate of all share classes and reported in USD.