Bestinvest says
Whilst the track record of this fund is relatively short, both managers have previous experience running long / short equity mandates. The fund is also still relatively small; if necessary this should enable the managers to be more nimble opening and closing fund positions.
Portfolio is built around a central macro case, fundamental company work and valuation. The team consider themselves to be longterm fundamental investors with a valuation bias. They will seek to go long undervalued companies where they can identify a catalyst for them to re-rate as profitability improves. Short equity positions will display the opposite characteristics. The fund does not operate a high turnover trading approach to investing. The portfolio will consist of a combination of independent long and short positions and some pair trades, there is no prescribed balance between these. There is no formal stop loss procedure in place at the position or portfolio level, although a 10% loss will result in a fundamental re-assessment of the investment case. Index positions may also be employed to manage the fund's total exposures.