Bestinvest says
Managers McLean and Robertson have a track record of success on the similar SVM Global investment company dating back to 1991, adding value through exposure to fast growing asset classes and discount narrowing in underlying funds. However, the duo have struggled to add value since the banking crisis and this was our main reason for downgrading the fund to two stars (a hold rating) in 2009.
The portfolio is split into six themes: hedge, private equity, resources, property, special situations and other specialist vehicles - the latter includes emerging markets and country and industry specific funds. The managers assess appropriate allocations between asset classes from a top down (global economic prospects) perspective and then choose underlying funds according to value and the quality of the underlying fund managers. There is a high degree of commonality with the SVM Global investment trust run by the same managers.
Hedge fund exposure tends to be through long short equity funds (funds that make gains not only from rising share prices but also falling share prices). The managers take an absolute return approach which, combined with a diversified portfolio, aims to make the fund less volatile than some of the underlying holdings might suggest.