TIDMAIA
ALTIN market review and portfolio holdings
as of 1st January 2015
Baar, 22 January 2015 - 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, is
particularly well diversified and has a NAV performance of
+208.70%1 since its inception in December 1996.
ALTIN continues to deliver solid outperformance
The ALTIN share price was up +8.60% and +10.20% on the Swiss
(SIX) and London (LSE) exchanges respectively in 2014. Thanks to
the permanent capital base provided by its structure, the ALTIN
portfolio can be allocated to funds that require a slightly longer
lock-up but offer potentially higher returns, without incurring any
liquidity mismatch. The portfolio remains however highly liquid,
with 62.2% of assets invested in funds with monthly or better
liquidity, allowing the manager to make allocation shifts when
deemed necessary. The ALTIN NAV per share was up +5.75% over 20141,
clearly outperforming the HFRI index (+3.19%).
Portfolio as at 1st January 2015 Total Portfolio (%)
Macro 31.34%
ABD Managers plc Tactical Discretionary 2.72%
Macro UCITS Fund
Civic Capital Currency Offshore Fund Ltd 1.88%
Cumulus Energy Fund 2.75%
Fortress Macro Fund Ltd 2.71%
Goldfinch Capital Management Offshore Ltd 1.93%
H2O Vivace 2.34%
Merrill Lynch Investment Solutions 1.78%
- Fulcrum Alpha Macro UCITS
Old Hickory Trading Partners Ltd 2.07%
Quantica Managed Futures Fund Inc 2.42%
Stone Milliner Macro Fund Inc 2.12%
The Tudor BVI Global Fund Ltd 3.17%
Two Sigma Compass Enhanced Cayman Fund Ltd 5.45%
Equity Hedge 24.11%
Arrow Offshore Ltd 3.26%
Clearline Capital Partners Offshore Ltd 3.15%
Coatue Offshore Fund Ltd 4.29%
DB Platinum Ivory Optimal Fund 1.63%
NPJ Global Opportunities Fund 2.91%
Perceptive Life Sciences Offshore Fund Ltd 2.66%
Verrazzano European Focus Fund PLC 3.05%
Zeal China Fund Limited 3.16%
Event-Driven 28.13%
Aristeia International Ltd 3.66%
Contrarian Emerging Markets Offshore Fund Ltd 1.77%
Jana Nirvana Offshore Fund Ltd 4.93%
LLSOF LP 3.89%
Merrill Lynch Investment Solutions - Castlerigg 1.47%
Equity Event and Arbitrage UCITS Fund
Marathon Special Opportunity Fund Ltd 4.93%
Paulson Enhanced Ltd 2.51%
York European Focus Unit Trust 4.97%
Relative Value 33.30%
Atlas Enhanced Fund Ltd 3.36%
Capstone Vol Offshore Ltd 1.78%
Citadel Kensington Global Strategies Fund Ltd 5.32%
Claren Road Credit Fund Ltd 2.11%
Millennium International 3.40%
PAMLI Global Credit Strategies Offshore Ltd 1.39%
Providence MBS Fund Ltd 3.60%
Stratus Feeder Ltd 3.27%
Two Sigma Absolute Return Equity 2.41%
Enhanced Cayman Fund Ltd
Visium Global Offshore Fund Ltd 1.95%
ZP Offshore Utility Fund Ltd 4.71%
Protection 1.43%
Conquest Macro Fund Ltd 1.43%
Special Investments 0.32%
ALTIN AG 4.06%
Others 1.07%
Total 123.76%2
ALTIN: Q4 2014 commentary
The ALTIN portfolio produced a positive return over the last
quarter of the year, ending 2014 well above 5%, which puts it
significantly ahead of hedge fund and fund of hedge fund indices.
Arguably, the most important macro development during the quarter
was the continuing and accelerating trend in the collapse of oil
prices, which led to bouts of volatility and a re-pricing of
several assets. For hedge funds, the quarter actually started on a
difficult note, with three distinct and unrelated events leading to
losses across virtually all strategies, before some of them
recovered. First of all, on the first day of October many
investors, mainly hedge funds, lost a legal bid to force Fannie Mae
and Freddie Mac to share profits with private shareholders.
Although this is not the last word on that battle, the ruling has
led to dramatic losses in the common and preferred shares of the
two bailed-out companies. This impacted several credit and
event-driven funds to various degrees. Secondly, AbbVie Inc and
Shire Plc agreed to terminate their merger deal, with the former
paying about USD 1.6m in break-up fees. Shire, a large position in
many event-driven funds, lost roughly 30% on that day and many
other so-called tax-inversion deals saw their spreads widen. This
led to relatively large losses across the Event Driven space, which
was the largest negative contributor to the portfolio for the
quarter. Finally, the first half of October saw an accelerating
market correction, led by energy stocks, and a run to safety as
fears on global growth suddenly reappeared.
The markets went into reverse during the second half of the
month and into November led by a strong third-quarter earnings
season as well as good US economic data and an unexpected dovish
move by the Bank of Japan. Volatility re-appeared in December and
the last month of the year displayed a similar V-shape correction
as October, this time led by an accelerating drop in oil prices
accompanied by renewed concerns stemming from the political
situation in Greece. On average, Equity Hedge managers did not cut
their losses during the corrections, albeit they did remodel their
portfolio to focus on their highest convictions, which means that
they managed to eventually erase their losses and produce positive
returns over the quarter. Conversely, going through these seesaw
markets discretionary macro managers, especially the most
trading-oriented ones, tended to cut their pro-cyclical positions
as they reached their stop-loss triggers. As a consequence they
partially missed one or both of the rebounds and ended the quarter
in negative territory. It is fair to say that the shining stars of
the quarter were the systematic macro and trend following managers
who managed on average to produce double-digit returns for the
period. They capitalised on several currency, fixed income and
commodities trends, and unlike discretionary managers did not
implement damaging stop-loss measures.
The top contributors for the quarter were quite diverse, again
showing the diversity of sources of return in ALTIN. Best of all
was a power trader who rightly predicted warmer weather towards the
end of the year and strongly capitalised on subsequent collapsing
electricity prices. Just behind there is a Systematic Macro fund,
which is actually by far the best contributor in 2014. Its
approximately two week trading horizon has been very much in sync
with the prevailing market conditions of the last two years. More
generally 2014 was a good year for most Systematic Macro funds,
including trend followers, as one could see strong trends in fixed
income, currencies and in the second half of the year, energy. In
third place, we have a Chinese Equity Long /Short manager, which
benefited strongly from the rally in A-shares that followed the
opening of the Shanghai-Hong Kong Connect, the cross-border
investment channel that allows investors in each market to trade on
the other market using their local brokers and clearing houses. In
fourth position was an Equity Long/Short manager specialised in
bio-technology. This manager was certainly helped by the very good
performance of the overall sector, but its main performance drivers
were actually very idiosyncratic as its low correlation to the
index this year shows. Finally, in fifth position one finds a pure
trend-following manager. The bottom of the list was mainly made up
of Event Driven managers, especially in the credit space. In the
last quarter, following the events described above, they generally
erased all their year-to-date returns. Negative contributors also
include a grain trader who was caught in the autumn price rally,
and discretionary macro traders who tended to lose money due to
their short-duration/long equity positioning.
Top contributors YTD as of 31.12.2014 (estimated data)
-- Two Sigma Compass Enhanced Cayman Fund Ltd +2.08%
-- ZP Offshore Utility Fund Ltd +0.93%
-- Golden China Fund +0.82%
Top detractors YTD as of 31.12.2014 (estimated data)
-- Paulson Enhanced Ltd -0.41%
-- ABD Managers plc Tactical Discretionary Macro UCITS Fund -0.41%
-- Providence MBS Fund Ltd -0.29%
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 coming months.
Asset Allocation according to redemption frequency (including
remaining lock-ups)
as at 1 January 2015
Daily 6.40%
Weekly 10.01%
Monthly 45.80%
Quarterly 44.54%
Longer than Quarterly 17.01%
Total 123.76%3
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
Tel. +44 (0)20 7638 3435
info@altin.ch 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 31 December 2014
2 ALTIN's gross exposure stands at 123.76% as at 1 January 2015,
vs. 127.47% as 1 October 2014
3 ALTIN's gross exposure stands at 123.76% as at 1 January 2015,
vs. 127.47% as 1 October 2014
This information is provided by Business Wire
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