Profiles - Eschler AM, RDA Capital speak about their fund
Eschler Recovery Fund counts on endless stock picking opportunities in North America Theron de Ris
The Eschler Recovery Fund follows an equity long/short strategy with a long bias, managed by a small, independent equity fund manager called Eschler Asset Management LLP, based in London. It was launched in October 2012 and has returned almost 17% since then (to March).
The fund currently features in Opalesque's Emerging Managers (Emanagers) database.
"The strategy is focused on equities and the approach is bottom up, concentrated, and value-oriented," Eschler's founding partner, Theron de Ris explained to Opalesque. "My focus is primarily North America, though up to a-third of holdings may be outside North America (mostly in Europe)."
This strategy is consistent with his experience as he has been involved with US equities for 18 years and ran a fund for two years (2010-2011), which generated good results from its US equity exposure. But it is not only his experience that gives the strategy its geographical focus, he says, it is also the "endless opportunities" that can be found in the North American market.
He goes on to explain that the strategy is highly concentrated (usually five to 10 positions with a maximum of 15). Each position could either be a basket of stocks or a single company. "It is a conviction strategy," he says.
De Ris invests in two types of investments: "The first is companies with franchise qualities that for one reason or another are under a cloud or experiencing a temporary difficulty, but that have underlying asset value and strength in cash flow. The......................
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