Alternative Market Briefing

Oxford Investment Partners’ fund of funds ends 2012 up 9% thanks to hedge fund, equity, fixed income exposure

Monday, February 04, 2013

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Karl Sternberg From Precy Dumlao, Opalesque Asia:

The UK-based Oxford Investment Partners Ltd (OXIP)’s OXIP Diversified Fund delivered 1.9% (est.) in Q4-12, bringing the entire year’s gains to 9%, thanks to the fund’s equity, hedge fund and fixed income investments that contributed returns in excess of 10%.

As at 31st December 2012 the Fund (OXIP DF) was estimated at £37m ($58.1m).

OXIP DF's hedge fund portfolio returned 5% p.a. since its May 2006 inception, comparing favourably with the industry average of 1.4% p.a.

Portfolio managers Karl Sternberg and Paul Berriman said in OXIP DF’s Q4 2012 newsletter that the fund’s 2012 profits represent two thirds of the rise in the global equity index, "in line with the proportion of a positive year’s equity returns we aim to capture, and well ahead of inflation." The MSCI ACWI (75% hedged to sterling: OXIP's medium-term benchmark) delivered 2.9% for the quarter and 14% for the year. UK conventional gilts returned 2.7% over twelve months, index-linked bonds -0.3%.

The duo expressed their outlook in the newsletter: "Turning to the future there is so much despondency about the world economy that it is difficult not to be a little heartened. Pessimists predict that monetary policy, the main weapon employed in the US, UK and Europe, is running out of efficaciousness. Our view is that we have yet to see the full benefit of previous efforts and we shall see more t......................

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