TIDMAIA
ALTIN market review and portfolio holdings as of 1st April
2016
Baar, 19 April 2016 - ALTIN AG (SIX: ALTN, LSE: AIA), the Swiss
alternative investment company listed on the London and Swiss stock
exchanges, discloses its entire hedge fund portfolio holdings as
part of its policy of full transparency to investors. The
portfolio, which is well diversified across 40 underlying hedge
funds, has achieved an NAV performance of +206.19%1 since its
inception in December 1996.
ALTIN continues to deliver solid outperformance
Since the end of 2015, the ALTIN share price was up +10.00% and
+10.25% on the Swiss (SIX) and London (LSE) exchanges respectively
at the end of March 2016. Over the same period, the share price
discount to NAV has fallen significantly since the end of 2015,
reducing from 14.64% to 3.48%, based on the latest estimates.
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 65.39% of assets invested in funds with monthly
or better liquidity, allowing the manager to make allocation shifts
when deemed necessary.
Portfolio as at 1st April 2016 Total Portfolio %
Long Only 1.62%
FP Argonaut European Alpha Fund 1.62%
Macro 28.81%
Cumulus Fund Leveraged 3.15%
Finisterre Global Opportunity Fund 3.35%
Goldfinch Capital Management Offshore Ltd 2.03%
H2O Vivace 3.16%
Quantica Managed Futures Fund Inc 2.30%
Stone Milliner Macro Fund Inc 3.75%
The Tudor BVI Global Fund Ltd 2.94%
Two Sigma Compass Enhanced Cayman Fund Ltd 8.13%
Equity Hedge 21.86%
Arrow Offshore Ltd 1.85%
Clearline Capital Partners Offshore Ltd 3.08%
Coatue Offshore Fund Ltd 3.08%
DB Platinum Ivory Optimal Fund 1.56%
NPJ Global Opportunities Fund 2.73%
Passport Long Short Fund 2.10%
Verrazzano European Focus Fund PLC 4.09%
Zeal China Fund Limited 3.37%
Event Driven 26.10%
Aristeia International Ltd 3.68%
Contrarian Emerging Markets Offshore Fund Ltd 3.97%
Jana Nirvana Offshore Fund Ltd 4.46%
LLSOF LP 1.71%
Marathon Special Opportunity Fund Ltd 3.35%
Paulson Enhanced Ltd 1.83%
SFP Value Realization Fund Ltd 2.55%
York European Focus Unit Trust 4.55%
Relative Value 43.39%
Acadian Global Leveraged Market 3.05%
Neutral Equity UCITS
Atlas Enhanced Fund Ltd 2.91%
Capstone Vol Offshore Ltd 3.13%
Citadel Kensington Global Strategies Fund Ltd 6.23%
Claren Road Credit Fund Ltd 0.44%
Concordia Fixed Income Relative Value Ltd 2.63%
Millennium International 4.49%
Providence MBS Fund Ltd 3.61%
Stratus Feeder Ltd 4.98%
Two Sigma Absolute Return Equity 3.40%
Enhanced Cayman Fund Ltd
Visium Balanced Offshore Fund Ltd 2.75%
ZP Offshore Utility Fund Ltd 5.77%
Protection 4.81%
Conquest Macro Fund Ltd 0.78%
Fortress Convex Asia Fund Ltd 2.10%
TailProtect Ltd 1.93%
Special Investments 1.03%
Total 127.62%2
ALTIN: Q1 2016 commentary
The ALTIN portfolio was down in the first quarter of the year,
amidst high macro uncertainties and volatile market actions. Yet,
when compared to its peers and other absolute return strategies, it
has shown a high level of capital protection and a low sensitivity
to risky assets, achieving nearly flat performance in January in
sharp contrast to the collapse of equity markets. In March,
however, as many markets strongly rebounded, ALTIN was down,
primarily due to losses in Protection strategies, systematic macro
funds, as well as a couple of Event Driven funds. This means that
on a year-to-date basis, the Fund is pretty much in line with the
average fund of hedge funds but showing lower correlation to risk
assets.
The Macro style silo was the best contributor for the period,
with systematic funds posting strong returns in January and
February, primarily thanks to long bond and short energy
positioning. This is typical of what these types of funds can bring
to a portfolio as they hold onto positions longer than most
discretionary managers, therefore fully capitalising on long
lasting trends. Not only did this reduce ALTIN's volatility, but it
also allowed for profit-taking at the end of February in order to
invest in new funds at interesting valuations. On the discretionary
side, results were mixed with a 50/50 split between positive and
negative contributors, both amongst global macro managers and
commodity specialist. Negatively contributing managers generally
lost money on their long equity trades, especially in Europe and
Japan, and on their long US Dollar positioning. An emerging market
specialist contributed positively by going through the volatile
beginning of the year relatively unscathed and then capitalising on
the improving sentiment towards the end of the quarter.
The Equity Hedge silo was a negative contributor. Managers in
that space first suffered from their long net exposure to markets
and then got caught in the subsequent succession of market
rotations. At the beginning of February, these hurt long positions
in technology and short positions in industrials. Later in the
month, a whole host of consensus trades lost money. As a result all
funds in the silo contributed negatively, with the exception of a
China specialist that managed to limit its drawdown earlier in the
year and then catch the market rebound. Also noteworthy is the fact
that as profits were taken in funds in other strategies, a new
long-only European fund was added to the equity bucket, which then
contributed positively to performance.
None of the Event Driven funds generated positive performance
over the quarter, with the exception of a Japanese activist that
entered the portfolio in March. Given the violence of the
correction, especially in special situation consumer and healthcare
stocks, a couple of equity-dedicated funds strongly detracted from
performance. However, other funds limited losses thanks to
better-diversified and less directional portfolios. Credit Event
Driven funds also suffered from the widening of spreads on the back
of the crude oil sell-off and renewed global growth worries.
However, losses were relatively limited thanks to cautious
positioning.
The Relative Value silo contributed slightly negatively to
performance, with a high level of return dispersion in underlying
funds. Equity market neutral strategies were strong contributors in
January but subsequently lost money in the market rotation that
took place in February and March. The best contributor in that
space was a utility specialist that was able to produce positive
returns for 6 months in a row, taking advantage of disruption in
the energy sector. On the downside, large multi-manager platforms
along with healthcare specialist were the main detractors, even
though losses remained relatively limited. As for non-equity
strategies, it is worth mentioning that interest rate and
volatility arbitrage funds all contributed positively to
performance. This is a sign that, as expected, their opportunity
set improved as the Fed's monetary policy started to tighten and,
more importantly, became more uncertain.
Protection strategies were strong contributors in January and
February, but gave back some performance in March as risk-aversion
sharply receded. On average the funds in this silo contributed
positivelyover the period, but this was further enhanced by
appropriate profit-taking at the end of February.
Top contributors YTD as of 31.03.2016 (estimated data)
· Two Sigma Compass Enhanced Cayman Fund Ltd +1.07%
· ZP Offshore Utility Fund Ltd +0.39%
· Quantica Managed Futures Fund Inc +0.34%
Top detractors YTD as of 31.03.2016 (estimated data)
· Paulson Enhanced Ltd -0.70%
· Citadel Kensington Global Strategies Fund Ltd -0.48%
· Jana Nirvana Offshore Fund Ltd -0.44%
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. However, if
the high level of market volatility and manager return dispersion
is to persist, portfolio rebalancing will be frequent and should
keep on adding value.
Asset Allocation according to redemption frequency (including
remaining lock-ups)
as at 1 April 2016
Daily 5.23%
Weekly 6.91%
Monthly 53.25%
Quarterly 51.73%
Longer than Quarterly 10.50%
Total 127.62%2
ALTIN: not affected by redemption issues
(MORE TO FOLLOW) Dow Jones Newswires
April 19, 2016 12:30 ET (16:30 GMT)
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
Tel. +41 (0)41 760 62 60
info@altin.ch Media enquiries for
the United Kingdom
Kinlan Communications
Media enquiries for Switzerland David Hothersall
Hirzel.Neef.Schmid. Konsulenten AG Tel. +44 (0)20 7638 3435
Jürg Wildberger davidh@kinlan.net
Tel. +41 (0)79 351 10 24
juerg.wildberger@konsulenten.ch
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 March 2016
2 ALTIN's gross exposure stands at 127.62% as at 1 April 2016,
vs. 128.51% as 1 January 2016
View source version on businesswire.com:
http://www.businesswire.com/news/home/20160419005753/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
April 19, 2016 12:30 ET (16:30 GMT)
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