Altin’s broad approach pays off
A fairly broad list of over 35 hedge funds has not diluted returns at Swiss-listed investor Altin, as it made over double the returns of its average rival in 2010, and beat the average this year.
Altin, which is also listed on London’s stock exchange, made 12.5% last year, compared to 5.7% from the average fund of funds reporting to Hedge Fund Research.
It was up a further 2.5% by 31 March, compared to 0.9% from rivals.
Since implementing a new investment program in 2009, the Swiss- and London-listed fund of funds has concentrated on high liquidity of investments.
This generated returns last year when such investors were caught between preference for liquidity by their own clients, and good prospects for less liquid strategies such as distressed debt and activism.
Jose Galeano, head of alternative investments at SYZ Asset Managmement, the investment manager for Altin, said: “Our main focus at present is to remain in very liquid strategies and avoid credit risk. Our investment strategy favours generating alpha with not much beta.
“We are very happy with the current Altin portfolio composition in over 30 hedge funds, and believe it is in a ‘sweet spot’ in terms of diversification.”
Altin’s largest holding, at 6.2%, is BlackRock UK Emerging Companies Holding, followed by The Clive fund (5.76%), R3 Capital Partners (5.6%) and Hayman Capital Offshore (5.4%).
Other notable holdings include the Brevan Howard Fund (4.3%), Paulson Advantage Plus (3.8%) and York European Opportunity Unit Trust (4.6%).
As part of Altin’s recent AGM, it noted the recent repurchase of 470,000 shares, conducted as part of its buyback programme completed in mid-December.