Swedish manager CB has provided an update on its CB Hedge fund three years after it was "restarted" following a period of six months in which it lost 39%.
Swedish manager CB has provided an update on its CB Hedge fund three years after it was “restarted” following a period of six months in which it lost 39%.
The two key changes implemented at the time were to broaden the long portfolio and increase the beta in the long portfolio, CB said.
This has resulted in the fund achieving its risk, return and correlation targets, the manager added.
The risk goal was for standard deviation to be about 10%, something it has achieved much of the time since September 2007, apart from a period between late 2008 to early 2009.
The return target was 10%-15% annually for investors. “Since restart we have achieved our goal,” CB said.
Correlation has been “almost zero” against global and regional indices, as well as against other hedge funds – including indices such as HFRX Equity Market Neutral, MSCI Europe, MSCI US and MSCI World.