TIDMAIA
ALTIN market review and portfolio holdings
as of 1st July 2014
Baar, 15 July 2014 - ALTIN AG (SIX: ALTN, LSE: AIA), the Swiss
alternative investment company listed on the London and Swiss stock
exchanges, today discloses its entire hedge fund portfolio holdings
as part of its policy of full transparency to investors. The
portfolio, featuring more than 40 underlying hedge funds and
representing over 10 investment strategies, is particularly well
diversified and has a NAV performance of +202.11%1 since its
inception in December 1996.
ALTIN continues to deliver solid outperformance
After the +24.65% share price appreciation in 2013, the positive
share price trend has continued in 2014, with ALTIN shares rising
by a further +8% during the first half of the year. The share price
discount to NAV has fallen significantly since the beginning of
2014, reducing from 24.4% to 20.6%2. These positive developments
reflect the renewed investor interest in ALTIN, which is
underpinned by the successful share buyback programme implemented
in September 2103, as well as ALTIN's compelling intrinsic
strengths in terms of alternative investment outperformance, full
transparency and active fund management. ALTIN's permanent capital
base allows the portfolio to be judiciously allocated to funds that
require a slightly longer lock-up without incurring any liquidity
mismatch. The portfolio remains sufficiently liquid, with 63.1% of
assets invested in funds with monthly or better liquidity, allowing
the manager to make allocation shifts when deemed necessary.
Portfolio as at 1st July 2014 Total Portfolio (%)
Global Macro Strategy 19.93%
ABD Managers plc Tactical Discretionary 2.25%
Macro UCITS Fund
CCP Quantitative Fund ARISTARCHUS 1.48%
Civic Capital Currency Offshore Fund Ltd 1.76%
Fortress Macro Fund Ltd 2.67%
Merrill Lynch Investment Solutions 1.85%
- Fulcrum Alpha Macro UCITS
Stone Milliner Macro Fund Inc 1.91%
The Tudor BVI Global Fund Ltd 3.58%
Two Sigma Compass Enhanced Cayman Fund Ltd 4.43%
Commodity Trading Strategy 7.23%
Atreaus Overseas Fund Ltd 1.34%
Cumulus Energy Fund 1.89%
Goldfinch Capital Management Offshore Ltd 1.97%
Old Hickory Trading Partners Ltd 2.03%
Managed Futures Strategy 2.12%
Quantica Managed Futures Fund Inc 2.12%
Equity Long/Short Strategy 18.01%
Clearline Capital Partners Offshore Ltd 3.14%
Coatue Offshore Fund Ltd 5.06%
DB Platinum Ivory Optimal Fund 1.64%
Perceptive Life Sciences Offshore Fund Ltd 2.33%
Verrazzano European Focus Fund PLC 3.46%
Zeal China Fund Limited 2.38%
Equity Long Bias Strategy 8.96%
Arrow Offshore Ltd 3.26%
Golden China Fund 2.79%
NPJ Global Opportunities Fund 2.91%
Event-Driven Strategy 29.35%
Aristeia International Ltd 4.04%
Jana Nirvana Offshore Fund Ltd 5.55%
LLSOF LP 3.99%
Merrill Lynch Investment Solutions - Castlerigg 1.53%
Equity Event and Arbitrage UCITS Fund
Marathon Special Opportunity Fund Ltd 5.79%
Paulson Enhanced Ltd 2.99%
York European Focus Unit Trust 5.46%
Credit Long/Short Strategy 3.88%
Claren Road Credit Fund Ltd 2.47%
PAMLI Global Credit Strategies Offshore Ltd 1.41%
Equity Market Neutral Strategy 11.30%
Atlas Enhanced Fund Ltd 3.26%
Tradeworx Ultra Select Offshore Fund Ltd 0.99%
Two Sigma Absolute Return Enhanced Cayman Fund Ltd 2.31%
ZP Offshore Utility Fund Ltd 4.74%
Interest Rate Strategy 3.90%
Providence MBS Fund Ltd 3.90%
Volatility Strategies 1.96%
Capstone Vol Offshore Ltd 1.96%
Protection Strategies 1.04%
Conquest Macro Fund Ltd 1.04%
Multi-Strategy Funds 13.39%
Citadel Kensington Global Strategies Fund Ltd 4.99%
Millennium International 3.55%
Stratus Feeder Ltd 2.84%
Visium Global Offshore Fund Ltd 2.01%
Private Equity 0.21%
Cerberus Asia Partners LP 0.21%
ALTIN AG 4.87%
Others 1.52%
Total 127.67%3
ALTIN: Q2 2014 commentary
The portfolio was up for the quarter, with all strategies
contributing positively except for the Interest Rate and Protection
strategies allocations during a quarter characterised by a bullish
environment across all markets, fuelled by a more dovish speech
from Janet Yellen as well as more accommodating measures from Mario
Draghi in Europe.
Roughly one third of the portfolio is allocated to equity-based
strategies and another third to Event Driven strategies. This
allocation is balanced by Macro strategies that have no systematic
directional bias in their positioning and can act as a protection
in a bear market as well as Relative Value strategies that have
limited exposure to market beta. The portfolio is well positioned
to capitalise on the current benign market environment whilst
remaining mindful of potential risks. The protective strategies
currently in place have a minimal negative carry but offer a
sizeable profit profile in case some of these risks
materialise.
With respect to changes in the portfolio, positioning has
remained stable throughout the quarter with only minor changes
within each strategy allocation. In the Macro silo, a relatively
small position in a CTA was redeemed. A new position was added to
the portfolio in the Event Driven silo via an established manager
with the potential to generate substantial returns in the current
environment. The Relative Value allocation was reinforced with two
new additions via a Volatility Arbitrage and a Multi-Strategy fund.
In equity hedge a manager focusing on US large caps with a
bottom-up fundamental approach was added.
Macro funds contributed positively to the quarter as Systematic
funds generated strong profits and offsetting the losses incurred
by Discretionary Macro traders. Allocations to shorter-term
Systematic Macro funds generated strong returns for the quarter.
These funds took advantage of opportunities in fixed income and
commodities futures markets. In commodities trading, a specialised
grain trader profited from short positions in corn that were driven
by his fundamental views and contrarian positioning. There has been
a lot of pressure on Discretionary Macro funds as market trends
have been difficult to capture. Most managers in that group were in
a "wait and see" mode running low risk exposures as low volatility
and lower US rates so far this year penalised their returns.
The equity hedge allocation bounced back after the severe sector
rotation that rocked the markets earlier in the year. Stock
reaction appears to have normalised again following the shake out
of investors from overcrowded sectors such as healthcare, consumer
and technology. Despite reducing risk earlier in the quarter,
underlying managers held on to their high conviction trades and
reengaged gradually with the markets as stocks reacted to
fundamentals. Asian managers were mixed as Chinese markets were
slightly up for the quarter but still down for the year, the best
performance coming from a manager exposed to growth stocks such as
Chinese internet names. The rally in emerging markets was not fully
captured by the managers due to limited sizing in their
portfolios.
Within the Event Driven allocation all the underlying funds were
positive for the quarter as they benefited from the continuing
upward trend in mergers and acquisitions as well as buyback
activity. This environment has supported the trades of Event Driven
managers in equities and credit. While typical merger arbitrage is
out of favour due to prevailing low interest rates, the rise in
corporate restructurings, spin-offs and recapitalisations has
offered many interesting opportunities for managers investing in
special situations. In Europe managers saw value in the shares of
Greek banks while in the US restructurings such as in the airline
industry have generated a lot of interest. Continuing consolidation
in the telecoms and healthcare space proved rich with
opportunities: in healthcare for example Valeant's hostile bid for
Allergan was a profitable trade for many of the underlying managers
while the Time Warner/Comcast deal was another situation in which
managers participated successfully.
Within Relative Value, Equity Market Neutral managers were less
impacted by the sector rotation that seems to have created
opportunities for some of them. Similarly Multi-Strategy funds with
a relative value approach did well during the quarter, as managers
were able to capture market dislocations in equities and credit.
Interest Rate Strategies detracted from performance due to a fund
that is positioned long US Treasury and short agency MBS. This
trade has a very strong optional profile that would provide
additional protection to the portfolio if the economic situation
were to change significantly from the current low growth
environment.
Top contributors YTD as of 30.06.2014 (estimated data)
* Two Sigma Compass Enhanced Cayman Fund Ltd +0.92%
* ZP Offshore Utility Fund Ltd +0.72%
* York European Focus Unit Trust +0.68%
Top detractors YTD as of 30.06.2014 (estimated data)
* Coatue Offshore Fund Ltd -0.25%
* Conquest Macro Fund Ltd -0.24%
* Zeal China Fund Limited -0.24%
ALTIN: Portfolio profile to remain stable
For the time being the portfolio is expected to remain fairly
stable and at this stage anticipated hedge fund reallocations
should not dramatically change the profile of the Fund. It is to be
emphasised that a significant portion of the portfolio is liquid
enough to quickly take advantage of new investment opportunities
should they arise during the course of the year.
Asset Allocation according to redemption frequency (including
remaining lock-ups)
as 1 July 2014
Daily 4.87%
Weekly 10.73%
Monthly 47.50%
Quarterly 44.97%
Longer than Quarterly 19.60%
Total 127.67%4
ALTIN: not affected by redemption issues
ALTIN is a closed-ended and fixed capital fund and as such it is
not faced with redemption requests. This provides the investment
manager with the opportunity to select the best risk/reward
opportunities in the hedge fund universe. Investors can freely buy
and sell ALTIN shares on a daily basis on the London or Swiss stock
exchanges, without the need to redeem at fixed redemption
dates.
For further information, please contact:
Tony Morrongiello - Chief Executive Officer Kinlan Communications
Tel. +41 (0)41 760 62 60 David Hothersall
info@altin.ch Tel. +44 (0)20 7638 3435
davidh@kinlan.net
Note to Editors
About ALTIN AG
ALTIN AG was launched in 1996 and is listed on the SIX Swiss
Exchange as well as on the London Stock Exchange. It ranks among
Switzerland's leading alternative investment companies. Currently,
ALTIN is invested in more than 40 hedge funds representing diverse
investment strategies. Its objective is to generate an absolute
compound annual return in USD terms with lower volatility than
equity markets. Thanks to these characteristics and a low
correlation with equity markets, ALTIN shares provide an ideal
complement to all diversified portfolios.
www.altin.ch
1 Estimated NAV performance as at 30 June 2014
2 Based on SIX share price discount to NAV as at 31.01.2014 and
30.06.2014
3 ALTIN's gross exposure stands at 127.67% as at 1 July 2014,
vs. 127.83% as 1 April 2014
4 ALTIN's gross exposure stands at 127.67% as at 1 July 2014,
vs. 127.83% as 1 April 2014
This information is provided by Business Wire
Altin Reg (LSE:AIA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Altin Reg (LSE:AIA)
Historical Stock Chart
From Jul 2023 to Jul 2024