ALTIN market review and portfolio holdings
as of 1st April 2015
Baar, 20 April 2015 – ALTIN AG (SIX: ALTN, LSE: AIA), the Swiss alternative investment company listed on the London and Swiss stock exchanges, today discloses its entire hedge fund portfolio holdings as part of its policy of full transparency to investors. The portfolio, featuring more than 40 underlying hedge funds, is particularly well diversified and has a NAV performance of +221.49%1 since its inception in December 1996.
ALTIN continues to deliver solid outperformance
Since the end of 2014, the ALTIN share price was up +14.64% and +16.67% on the Swiss (SIX) and London (LSE) exchanges respectively at the end of March 2015. The NAV performance for the same period is +4.24% (estimated). Thanks to the permanent capital base provided by its structure, the ALTIN portfolio can be allocated to funds that require a slightly longer lock-up but offer potentially higher returns, without incurring any liquidity mismatch. The portfolio remains however highly liquid, with 59.16% of assets invested in funds with monthly or better liquidity, allowing the manager to make allocation shifts when deemed necessary.
|Portfolio as at 1st April 2015||Total Portfolio (%)|
|Civic Capital Currency Offshore Fund Ltd||1.94%|
|Cumulus Energy Fund||2.45%|
|Fortress Macro Fund Ltd||2.72%|
|Fulcrum Alpha Macro Fund||2.01%|
|Goldfinch Capital Management Offshore Ltd||1.97%|
|Quantica Managed Futures Fund Inc||2.78%|
|Stone Milliner Macro Fund Inc||3.17%|
|The Tudor BVI Global Fund Ltd||2.97%|
|Two Sigma Compass Enhanced Cayman Fund Ltd||5.11%|
|Arrow Offshore Ltd||3.18%|
|Clearline Capital Partners Offshore Ltd||3.45%|
|Coatue Offshore Fund Ltd||3.89%|
|DB Platinum Ivory Optimal Fund||1.74%|
|NPJ Global Opportunities Fund||3.22%|
|Perceptive Life Sciences Offshore Fund Ltd||2.23%|
|Verrazzano European Focus Fund PLC||3.84%|
|Zeal China Fund Limited||3.07%|
|Aristeia International Ltd||3.81%|
|Contrarian Emerging Markets Offshore Fund Ltd||3.46%|
|Jana Nirvana Offshore Fund Ltd||5.29%|
|Merrill Lynch Investment Solutions - Castlerigg Equity Event and Arbitrage UCITS Fund||1.56%|
|Marathon Special Opportunity Fund Ltd||5.15%|
|Paulson Enhanced Ltd||2.98%|
|York European Focus Unit Trust||4.50%|
|Atlas Enhanced Fund Ltd||2.80%|
|Capstone Vol Offshore Ltd||2.92%|
|Citadel Kensington Global Strategies Fund Ltd||6.06%|
|Claren Road Credit Fund Ltd||2.25%|
|Providence MBS Fund Ltd||3.81%|
|Stratus Feeder Ltd||3.68%|
|Two Sigma Absolute Return Equity Enhanced Cayman Fund Ltd||2.58%|
|ZP Offshore Utility Fund Ltd||5.31%|
|Conquest Macro Fund Ltd||2.20%|
ALTIN: Q1 2015 commentary
ALTIN’s portfolio had a good start to the year with positive performances every month so far, including in January and March when world equities were negative on average. Once again, central banks played a major role in driving markets, with the Swiss National Bank’s surprising end to its currency floor, the European Central Banks’ much anticipated launch of its quantitative easing programme and the US Federal Reserve’s unexpected dovish comments all leading to the major price moves witnessed over the quarter. In general, most hedge funds across most strategies managed to perform positively over the period. Notably, the HFRI Fund Weighted Composite Index outperformed the MSCI World Net Return Index during a positive quarter for the first time in 8 years.
ALTIN’s overall return was very good, ending the quarter well ahead of hedge fund indices. ALTIN’s NAV has returned +4.24% since the end of 2014 (based on estimates as 31.03.2015), against the HFRI FoF Index and the HFRX Index which recorded +2.51% and +2.06% over the same period. In terms of strategies, trend following was clearly the best performer, capitalising on strong trends in fixed income and currencies. It was followed by all equity-related strategies, regardless of their net exposure, demonstrating the capacity of the managers to produce value thanks to their stock-picking skills. Beyond pure trend following, the Macro bucket saw a wide dispersion of returns, especially related to currency exposures. Commodity managers were all negative over the period. In the Event Driven space leaders were to be found in equity special situations, activism and merger arbitrage, whereas credit strategies contributed slightly negatively to performance. Finally, in the Relative Value silo, it is worth mentioning that volatility arbitrage and credit long/short contributed positively, possibly indicating that the opportunity set for these strategies is gradually improving.
The top contributor for the quarter was a Protection fund that managed to perform extremely well in January when markets corrected whilst protecting capital when markets subsequently rallied. It is worth mentioning that this manager has been a positive contributor to the portfolio during the dramatic equity market rise of the last five years, whilst at the same time providing protection in periods of market corrections. The second contributor for the quarter is the portion of Treasury shares bought by ALTIN when the price discount to NAV was very large and that strongly rallied this year. The four following contributors each belong to one of the four major styles represented in the portfolio, underscoring the diversified composition of the drivers in the portfolio. By order of importance these are: a discretionary macro manager with a value bias, a multi-strategy multi-manager platform, an equity event-driven fund and a biotechnology equity long short fund. On the downside, the major negative contributor is a systematic macro fund that produced its worse performance so far in January due to a short CHF exposure and a short fixed US Treasury positioning. It subsequently recovered part of its losses in the February reversal, but ended the quarter in negative territory. The following 5 negative contributors also belong to the Macro bucket, with losses mainly stemming from currency and commodity exposures.
|Top contributors YTD as of 31.03.2015 (estimated data)|
|Top detractors YTD as of 31.03.2015 (estimated data)|
|Cumulus Energy Fund||-0.18%|
ALTIN: Portfolio profile to remain stable
For the time being the portfolio is expected to remain fairly stable and at this stage anticipated hedge fund reallocations should not dramatically change the profile of the Fund. It is to be emphasised that a significant portion of the portfolio is liquid enough to quickly take advantage of new investment opportunities should they arise during the course of the coming months.
Asset Allocation according to redemption frequency (including remaining lock-ups)
as at 1 April 2015
|Longer than Quarterly||16.85%|
ALTIN: not affected by redemption issues
ALTIN is a closed-ended and fixed capital fund and as such it is not faced with redemption requests. This provides the investment manager with the opportunity to select the best risk/reward opportunities in the hedge fund universe. Investors can freely buy and sell ALTIN shares on a daily basis on the London or Swiss stock exchanges, without the need to redeem at fixed redemption dates.
For further information, please contact:
Tony Morrongiello - Chief Executive Officer
Tel. +41 (0)41 760 62 60
Tel. +44 (0)20 7638 3435
Note to Editors
About ALTIN AG
ALTIN AG was launched in 1996 and is listed on the SIX Swiss Exchange as well as on the London Stock Exchange. It ranks among Switzerland’s leading alternative investment companies. Currently, ALTIN is invested in more than 40 hedge funds representing diverse investment strategies. Its objective is to generate an absolute compound annual return in USD terms with lower volatility than equity markets. Thanks to these characteristics and a low correlation with equity markets, ALTIN shares provide an ideal complement to all diversified portfolios.
1 Estimated NAV performance as at 31 March 2015
2ALTIN’s gross exposure stands at 124.12% as at 1 April 2015, vs. 123.76% as 1 January 2015