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Alternative Market Briefing

Liongate's flagship fund of hedge funds annualises 9.28% since '04 inception, beats indices

Tuesday, November 02, 2010

From the Opalesque team: The Liongate Multi-Strategy Fund, the $1.8bn flagship of FoHFs house Liongate Capital Management, was up 1.38% (net) for Q3-2010 against 3.14% for the HFRX Global Hedge Fund Index, 13.89% for the MSCI World Index and a 7.30% return for the Barclays Global Aggregate Bond Index.

The fund is down 0.82% YTD (USD class) but has annualised 9.28% since inception (in April 2004), versus 0.70% for the HFRX Global Hedge Fund Index, 4.26% for the MSCI World Index and a 5.75% return for the Barclays Global Aggregate Bond Index.

Returns during the quarter were derived across a broad array of sub-strategies, according to a recent quarterly report received by Opalesque. Multi-strategy exposure was the strongest performer, proving profitable in all three months. Overall, the fund's equity-focused strategies - Equity Long/Short, Event Driven and Equity Market Neutral - were moderately positive. Commodity exposure was the second most profitable sub-strategy driver, particularly in September. And negative portfolio drivers were predominantly managers positioned conservatively with regards to the macroeconomic environment or those designed to serve as structural hedges to existing exposures.

Regardless of short-term risk appetite, the long-term macroeconomic outlook still remains clouded, the report says.

Liongate's managers are finding attractive opportunities to deploy capital in the current environment. As has been the characteristic of mar......................

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