Wed, Apr 25, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Dacharan’s new quant equity fund up 7.5% in first 6 months thanks to quality of alpha

Thursday, July 31, 2014

Benedicte Gravrand, Opalesque Geneva:

A European fund manager recently launched a systematic equity fund that chases the quality of alpha in the equity space.

Dacharan Capital launched in May 2008 in the UK and subsequently moved to Switzerland, now operating a Jersey/Swiss management company structure. Their new Dacharan Equities Fund is a systematic market neutral equity fund incepted in January 2014; it is up 7.5% YTD (to end-June) net. It invests in a basket of value companies, with a momentum component added to the portfolio to incorporate market sentiment and to diversify.

David Beddington, Managing Partner at Dacharan, told Opalesque that they launched the fund because they are excited about the quality of alpha in the equity space, particularly in Europe. Alpha is the return in excess of the compensation for the risk borne.

"Dacharan’s research has uncovered a number of persistent equity performance drivers that we have a high level of confidence in," he explains. "Because of this, we have no need for beta in the portfolio in order to generate returns."

Recent research has shown that hedge funds are becoming increasing correlated with equity markets, he continues, which suggests that many managers are selling alpha and in fact delivering beta.

Dacharan stays out of the woods by keeping a market neutral portfolio for uncorrelated returns. "We keep a market......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its