Absolute Return Strategy
In today’s capital market environment there is an increasing need to invest in alternative investment strategies.
Goals in a low yield environment
Given the low interest rate environment investors are often forced into higher equity allocations. However, risk budgets may not allow such higher equity allocations when the asset mix consists of traditional instruments only. Higher equity allocations often imply a higher volatility of the overall portfolio. Alternative assets, however, can lead to a broader diversification effect and may improve the risk- return profile of the overall portfolio.
Liquid Alternative Addition
Liquid Alternatives may improve the risk return profile of the overall portfolio. Long/Short-Equity-Funds follow a different objective compared to long-only funds. Long/Short-Equity-Funds have more leeway for investment in the sense that they can engage in short equity positions and also use leverage within pre-defined risk limits. In the aggregate, most Long/Short-Equity-Funds have a lower equity market beta and therefore a reduced equity market exposure compared to traditional equity funds.
Seahawk Investments initiates the launch of a Long/Short-Equity-Fund, which focusses on the transport and energy sectors. Seahawk Investment takes advantage of the expertise provided by the industry sector experts on the team. Interestingly, historical performance correlation measures of the transportation and energy sectors and subsectors have been quite low. Within individual sectors and subsectors, the fund may engage in net-long or net-short-positions. In aggregate, the fund is targeting a balanced overall portfolio exposure with an on average net-equity-beta-factor of between +0,25 and +0,65.