Fund Spotlight: May 2016

Top Performing Funds

New Funds Spotlight

The systematic global macro arena is a very tough place in which to deliver consistent returns. Recent months have only stood to prove how disappointing large institutional players can be in this space and how systems have struggled in this abnormal and volatile macro environment. One of the managers we work with is subsequently taking a different approach, delivering a three-layer analytical and allocation program that aims to take advantage of global opportunities in fixed income, equity, precious metals, commodity and currency markets by implementing a multi-strategy systematic approach. This system is trained to seek a balance between strategic investments and tactical allocation in order to obtain optimal diversification and maximise returns. Through the refinement of three core investment programs, utilising smart beta technology, tactical asset allocation and currency programmes, they deliver returns with a low correlation to each other and the wider market – resulting in very compelling risk/reward characteristics for the overall strategy. With a team who have honed their skills together at Prudential, operating a fund under a highly regulated structure, they offer something very convincing to investors disappointed in this space. Click Here to find out more.

Illiquid Opportunities

Demand-driven growth in the incorporation of hybrid funds, funds that bridge the gap between Private Equity and Hedge Funds offering more liquid access to illiquid assets, is on the increase. One such fund, operating in the healthcare sector in the United Kingdom is  specifically focused on the provision of supported accommodation to adults with special needs. The opportunities in this market are two fold: solid gains can be made through the consolidation of a highly fragmented market but the strong long-term yield that an investment in care provision provides means that the investment case has longevity. Couple this with the wider political atmosphere, which is moving further towards private provision, and the investment case is clear. However, investment in this sector provides much more than simply a chance to grow an investment portfolio, by consolidation and making business in this sector better the lives of individuals at the most vulnerable end of society are vastly improved. When was the last time a large cap US equity investment left you feeling like you’d made a difference? Click Here to find out more.

Investor Appetite and Industry Trends

Over the last few weeks the Apex Cap Intro team has been observing a growth in funds focusing on Green Tech and Green Infrastructure. Energy in this space is becoming more and more competitive and investors have referenced the long term potential profits in this sector. In addition, they are conscious of the arbitrage to be gained by specialist funds focusing on the construction and delivery of functioning wind and photovoltaic sites, which tend to have a much shorter investment horizon. The forecast prices of delivery of nuclear energy and the ever tightening regulation around CO2 emissions are making traditional approaches less cost effective. The breakeven point for renewables looks all the more attractive as technological progression means that construction costs fall and yield increases. There are many funds in this space with investment horizons that span over decades as theylook to profit from the operating companies and long-term business rather than just the construction. Whilst core investor interest is in developed markets, there are funds that offer emerging market exposure to increase returns for the investor with a riskier appetite. With many institutional investors having a mandated green sector allocation, the future looks bright for investments in this space. Click Here to find out more.

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