Fund: Liontrust GF European Strategic Equity
Selector: Florian Gröschl, Absolute Return Consulting
Despite long/short equity managers having suffered in 2016, Groschl said there had been a lot of hype around quant-backed and systematics areas. However, Gröschl said he was able to find stand-out managers in the L/S equity space.
‘We moved into the Liontrust fund in October, so it is relatively new. But, the timing has been good, as markets have decorrelated and the short book is working well. That is the benefit of being a smaller player, such as ourselves, in that you can say: “Is the timing okay?” and if you think so, you act immediately and lock it in, rather than waiting for sign-offs and the opportunity may have passed.’
The fund is currently managed by Citywire A-rated duo, James Inglis-Jones and Samantha Gleave and has €103.9 million in assets under management.
At present, the fund holds net short positions in countries such as the US, the Netherlands, Canada, Belgium and Norway. Top sector allocations include materials (23.8%), industrials (25.3%) and consumer discretionary (20.0%).
Over the three years to the end of May 2017, the fund returned 21.6% in euro terms in the long/short equity category. This compares with a 5.4% sector average over the same time period.