Why invest in Equity Short Only
- For those who need exposure to declining markets
For those who want a traditional long equity portfolio from time to time actively hedged
- For those who find hedging via futures to rigid and put options too costly
- For those who need an actively managed and dynamic hedge depending on circumstances
The Tradewind Equity Short Only Share Class is a separate class of shares entitled to the performance of short portfolio of the Tradewind Equity Fund. Stocks are selected on the basis of expected poor relative or negative returns regardless horizon or benchmark weights. The Fund has complete freedom of investment participation, which varies in practice between 35% and 120%, Therefore timing is an important part of the investment policy. The Fund invests its core in the European universe. The Netherlands play an important role. The fund’s all-cap unencumbered by country, sector or capitalization. Liquidity of the underlying shares is a major consideration, in to what extent the Fund is able to respond dynamically to changing market conditions. Although the portfolio is concentrated, individual positions in practice do not exceed 6%. The number of positions vary between 10 and 20. The manner of risk management is described above under the Tradewind Equity Fund.
The Tradewind Equity Short Only Share Class is a unique proposition. Dedicated short-only hedge funds are a rarity, often with high barriers to entry and low liquidity.
This share class should be considered for hedge purposes or specific timed market intervals. In isolation this share class is not be considered as a long term investment. As over the longer term it hardly does generate positive returns. But that said the share class outperfomed the shorted European Eurstoxx index by 50% since inception. Wheras the shorted index halve halved, the share class is roughly unchanged, confirming its hedging capabilities.
Interested in these funds?
For more information contact the manager. Details are to be found on our contact page.