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From Benedicte Gravrand, Geneva: Still in our exploration of the robust Australian hedge fund market, Opalesque took a look at another impressive hedge fund manager from OZ; Sydney-based Cadence Asset Management.

3 hedge funds, same strategy Cadence runs three successful hedge funds which all follow the same strategy; it uses both fundamental analysis - with bottom up research, a target of 20 to 40 core investments and longer holding periods, and technical analysis - with 0 to 40 trading opportunities and shorter holding periods. The investment process involves both approaches - each core investment will have passed both technical and fundamental analysis tests, and shorting is done on stocks that have been judged negative by either. The investment universe is the ASX Listed securities and initial public offering. The gross exposure is between 80% and 150% of NAV, and the maximum leverage is $1 for every $1 of equity.

The third fund is called the Cadence Cayman fund, a fund open to offshore investors. It was launched in March 07 and returned so far 12%; whilst the first fund, the Cadence Capital Fund (– wholesale Unit Trust Australia) has an accumulated return of 175% (to Feb 07) since inception in November 03. Karl Siegling (MD and CIO) who has extensive experience in equity research takes care of trading, reporting and research, and Wayne Davies (COO) who was the COO of two other ass......................

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