Bestinvest says
The rating on this fund was removed following the announcement of the departure of manager Tim Russell, who has now been replaced by Steve Cordell.
The fund aims to achieve positive absolute returns of 10% net of fees and is not managed against any UK equity index. The investment universe includes FTSE 350 and the next 100 largest stocks. As well as direct equity exposure, the fund makes full use of the UCITs III regulations, using derivatives (Contracts for difference (CFDs), futures & options) to take both long and short positions. Additionally up to 100% of the portfolio may be in held in cash and near cash.
The net market exposure of the portfolio will depend on the business cycle view and relative attractions offered by companies. When the economy is expanding the portfolio will be net long and biased to cyclical stocks and during economic slowdown the portfolio will typically operate a net short position and invest more in defensive stocks. The fund will also employ a further strategy known as pair trades, a combination of long and short positions which is often used to neutralise market risk.