Artemis US Absolute Return I GBP

A conservatively structured, long / short, US equity strategy.

  • 111.88p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.89%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 22 June 2021, fund data last updated 25 August 2020

The manager aims to deliver a positive return over rolling three-year periods, regardless of market conditions. To achieve this he invests in a conservatively structured portfolio of long and short positions in US equities, with a focus large-cap stocks. Net market exposure is typically low at around 10%, with the manager reliant on stock selection to drive returns. The fund has delivered a lower volatility profile relative to peer group funds - a function of security diversification, modest investment style biases, low net and modest gross exposure.

Fund summary

Sector Targeted Absolute Return
Structure OEIC
Launched October, 2014
Size £226m
Yield 0.00%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.89%

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Investment process

The security selection process focuses on identifying undiscounted fundamentals with the aim of capturing periods of improving fundamentals and re-rating for long positions and the opposite for shorts. As part of this the team will also seek to identify the main variables that drive a company’s valuation with the aim of using short-term earnings forecasts to build upside / downside price targets. The manager will also consider the macro backdrop with a view to developing an understanding of the position in economic cycle and secular trends. The team are very aware of the impact of investment style bias and never seek to be overly concentrated on one factor. The investment universe is predominantly large and medium-sized US equities. Up to 20% may be non-US, usually as an extension of a sector / thematic opportunity that has been identified.

The fund has been notable for its low volatility and drawdown characteristics, although in recent years this has come at the expense of some upside participation. Manager William Warren had been co-manager on the strategy since inception in 2014, stepping up to lead in 2019 when previous manager Stephen Moore returned to Australia. Prior to joining Artemis, Moore and Warren successfully ran a similar strategy at Threadneedle.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 -0.16%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career -0.15%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

William Warren

Waren joined Artemis as a partner in 2014 from Columbia Threadneedle, where he had worked alongside Stephen Moore (previously lead PM) since 2008 as deputy manager of the Threadneedle US Extended Alpha and US Absolute Alpha funds. He began his career in New York as an analyst at JP Morgan in 1997. He joined the research department at Lehman Brothers in 2000 as an associate where he covered the software industry for three years before moving to the proprietary trading group where he was a Senior Vice President and portfolio manager until 2008. Warren has co-managed Artemis’ two US long/short strategies since launch in 2014, and has been the sole manager of these strategies since October 2019.

Track record

The track record of William Warren in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

Absolute -3.00% (January 2020 - June 2020)
Relative -3.00% (October 2019 - June 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

2.4579% Liberty Broadband Corp
1.7677% Lowes Companies Inc
1.6809% Fidelity National Info Services Inc
1.4293% Visa Inc
1.2437% Oracle Corp
1.1898% Linde Plc
1.1797% T-Mobile Us Inc
1.0301% Transunion
.9063% Crown Castle International Corp
.8349% Copart Inc
Source: Trustnet

Sector breakdown

Money Market 101.00%
Software 4.00%
Business Services 2.00%
Transport 1.00%
Retail 1.00%
Consumer Services 1.00%
Energy 1.00%
Consumer Durables 1.00%

Portfolio

Number of positions: 40-80 long, 60-120 short. +/- 20% in any one sector (at a net level). Net exposure -30 to +40% (typical +10%), gross exposure 100-200% (typical 100%). Expected volatility:4-6%.

Key Investor Information

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