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From Benedicte Gravrand, Geneva: Long/short equity manager explains why his fund is the real thing in a crowd of such funds who demonstrate no real shorting skills.
Alabama-based Aptus Capital’s long-short equity fund, Aptus Partners, LP, which manages US$25 mil, returned 8.44% in August 07 (5.49% YTD and 111.78% since inception in June 2003). The fund’s annualised return is 18.05%.
The Hennesse Long/Short Equity Index was up 0.08% that same month and 8.28% YTD. The index’ annualised return since 1993 is 12.12%.
The RBC Equity long/short index (from the investable RBC Hedge 250 Index) returned an estimated -1.07% in August and 6.96% YTD. And the Eurekahedge Hedge Fund Index returned an estimated -1.83% in August and 7.89% YTD.
While the Aptus fund and the indices' YTD returns correlate, the fund and the indices' August returns are totally uncorrelated. Timothy Calise of Aptus Capital believes his fund performed as a true equity long short fund, as opposed to funds which are correlated to other long/shorts and to equity markets. He explains why.
Most long/short equity funds are highly correlated
“Despite the name, most long/short equity funds are highly correlated with both other similar funds as well as the equity markets in general, typically attributed to the homogeneous background of the managers ( i.e. long only),” said Timothy Calise of Aptus Capital. “Over the past year there has be...................... To view our full article Click here
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