RWC US Absolute Alpha Fund B


Fund Investment Objectives

The RWC US Absolute Alpha Fund aims to provide a total return in a variety of market environments in excess of the return on short-term instruments. It employs a long-short equity strategy, using derivative strategies where appropriate, to gain exposure primarily to US equity securities. RWC US Absolute Alpha is a long-short US equity fund investing predominantly in large cap, highly liquid stocks. It has a strong fundamental approach to stock selection and employs a clear process for identifying and investing in companies. All decisions are made to make absolute returns. Both the long and the short book therefore tend to be direct investments and there is little or no use of index futures. The strategy has a strong focus on risk management and avoidance of capital losses. In periods where the portfolio is producing strong alpha the strategy will take advantage of this and can make significant returns. In periods where the market is extremely volatile or the portfolio may be at risk of losing capital the gross exposure may be dramatically reduced to preserve capital. The strategy typically holds both direct equity positions for long positions and synthetic equity positions for short positions. The gross exposure will normally average 125% and the net market exposure in the range of -20% to +60%. AUM reflects strategy assets and is denominated in USD.