Absolute return fund
Lent 2007/2008Long/Short Equity fund
Head: Saktiandi Supaat
Members: Yogesh Babber
Details
| Current Capital | Term High | Term Low | Current Return | Volatility | Risk limits |
|---|---|---|---|---|---|
| Review: Erosion of 5% value. Stop-Loss: Drop of 10% or below the nine-week low |
Description
Strategy
Mission: Generate consistent absolute return for investors in excess of S&P 500. Investment Strategy for Long: • P/E ratio equal or less than industry average • Positive net analyst recommendations • Profit margin above than benchmark • Dividend yield to be consistent in last 3 years • Call option price indicating a premium Investment Strategy for Short: • Arbitrage on corporate actions e.g. expected low synergies from a merger • Leverage the high systemic risk of the market. • Hedge for long positions during downturns Investment Principles • Exit if one of these fundamental factors changes adversely • Equal weight to short and long positions • Caution on Short sell through consistent review • MACD cross-over • Stochastic cross-over Committee View: “We have taken a long term view on our portfolio, based on strategic view of market, financial and competitive positioning of the entities. Given the volatility of the markets in the last quarter, we have consciously chosen to avoid investing in futures and options for the time being.”Further regulations
Supporting charities
We use our sponsors contributions to generate investment returns which can be then used to support valuable causes, such as charities.
Last year, we donated part of our profits from the CUIC Equity Fund to sponsor a scholarship at the Judge Business School.
