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Opalesque Exclusive: SVM UK Absolute Alpha Fund posts 1.4% in August, 3.7% since March-09 inception SVM UK Absolute Alpha Fund is a long/short UK equity UCITS fund. Since its launch on 11 March 2009, SVM UK Absolute Alpha has returned +3.7%. The fund’s objective is to beat cash returns over a 12 month period, substantially beat cash returns over 36 month periods and beat the equity markets over a full cycle. Notable contributions to performance coming from the long book in August included Northgate and Barclays Bank.

The portfolio has moved to a net long position, reflecting better economic news and improved market sentiment. Many stocks have risen dramatically in the last few months so SVM believes it sensible to adopt a cautious approach.

SVM remains negative on a number of sectors. Utility companies are likely to experience further pricing and regulatory pressure with the regulatory emphasis focusing on a deflationary environment. Support service businesses, reliant on government expenditure, are also likely to struggle as public spending cuts begin to impact revenues.

SVM is more positive on insurers and banks and to a lesser extent resources. Many insurers and banks have benefited through government intervention in the money markets and despite their recent rally, on a price to book valuation, look attractive. ... Corporate website: Source

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