Has Blackrock Absolute Alpha lost it's shine?

jamesd

wombat42, I suggest that you listen to some of the monthly conference calls. It's no problem at all to ask any reasonably sensible question in them, or outside them. They can choose to answer or not and may be required not to answer sometimes but asking isn't a problem.

earlgrey, sorry, I did think that you would know how to handle this, just wanted to offer some thoughts to people less familiar with these things than you are. Neptune Russia and Greater Russia is the sort of fund I use myself when seeking greater returns, with far greater volatility, but it's way beyond the risk tolerance of many who'd be interested in BlackRock UK Absolute Alpha as a reasonably stable choice. 13% or so down in the last 30 days? Would scare off lots of people! Even though it's still up 154% over three years.

Mark Lyttleton did make the point during one of the conference calls near the start of this year that it was inevitable that the fund would inevitably suffer from time to time so he at least knows that he isn't a deity.

astrogeezer, tease.

More seriously, you had the gumption to ask and are perfectly entitled to do whatever you choose with the reply you got, though you might want to remove the name of the client communications person from your earlier post, as a courtesy to them.

purch

I would be very interested to see what thay had to say

Ring 0207 743 3000 and ask for Nick Osbourne ( you might have to 'bluff' about who you are............works everytime )

jamesd

Calling the fund's co-manager instead of client relations might be a little excessive.

wombat42_2

earlgrey wrote: »

That's not a recommendation of the UBS fund I assume. :rolleyes:

Yeah do yourself a favour and get a slice of the action :rolleyes:

http://www.h-l.co.uk/fund_research/fund_performance/sedol/B06CMC5.hl

[Deleted User]

Within 5 months of investing your investment could be worth only 20% of what it was, 6 years later it could then be worth 330% of the original purchase. This is known as investing.

If you want something that will go up at a set percentage, ITS CALLED A SAVINGS ACCOUNT. Either your not the sharpest knife in the box or this threads a wind up.

jamesd

Different investments have different volatilities. This fund is not one where that large a drop in six months is expected, nor is 330% gain over 6 years likely - 250% maybe.

earlgrey_3

jamesd wrote: »

earlgrey, sorry, I did think that you would know how to handle this, just wanted to offer some thoughts to people less familiar with these things than you are.

You flatter me James because this particular fund and how to evaluate it with any accuracy is a mystery to me.
When I invested, couldn't see much more than a very short track record to go on which was why I was wary and still am.

With shares, I have the usual market information available to me. Anyone invested in say Jupiter Income (which I'm not) watching it fall 30% could learn that it was being heavy in financials, or whatever, that caused the problem, look at that sector and make some judgement on how well the fund was managed and where it was going. With this fund it's all more mysterious and far more a blind act of faith in the ability of the manager.

If this fund went up without a fall for 10 days without interruption, my best guess, without any other information, would be that it would go up again on day 11. When the fund fell for 10 days without interruption my best guess, no more, was that it would fall again on day 11. It did.

It did the same for 15 days so my best guess yesterday was that it would fall again today and of course it has. I can't at the moment think of any logical reason to guess that it won't do the same tomorrow. And if that happens then my guess wouldn't logically be different the day after. Not exactly a scientific approach but I can't think of a better one when there's no better information on what caused the new pattern.

You obviously remain positive about this fund despite this entirely new pattern, can I ask how you evaluated it?

Yant1, I assume you don't know anything about this fund which has a target of 10%pa, it's purpose, or the techniques it uses so I hope James' reply to you helped. If not then you'd be safest keeping to savings. :rolleyes:

wombat42_2

I'm a volatility freak. I cant get enough of it. Nothing like wild gyrations.:D:D:D:D

jamesd

earlgrey, listening to the conference calls and looking at the top 10 holdings to see how they are performing helps. Also this just isn't that much of a change compared to some of the things I hold. Short term I don't know which way it'll go, longer term than the odd month I still don't know but I've no reason yet to believe that the managers have suddenly stopped being as capable as they have been. Drops from time to time are just a fact of life, even for good managers.

Have a read of BlackRock's Lyttleton falters in July but remains confident and Fund Result: Mark Lyttleton, BlackRock UK Absolute Alpha.

[Deleted User]

earlgrey wrote: »

Yant1, I assume you don't know anything about this fund which has a target of 10%pa, it's purpose, or the techniques it uses so I hope James' reply to you helped. If not then you'd be safest keeping to savings. :rolleyes:

I know everything about the fund... ITS A FUND and thus subject to the volatility of the stockmarket. THERE IS NO SUCH THING AS GUARENTEED RETURNS wrt funds. Targets are merely p*****g in the wind.

If Mr Manager gets his long and short calls wrong this fund could actually lose infinitly more then a long only fund. Good luck to him if he achieves his 10% but how much are the management fees?

You obviously know nothing about investing, I suggest you read some books.