L&G Diversified Absolute Return fund loses over 8% in a day !

barny_100

turbobob wrote: »

Octopus's Absolute fund has performed appallingly recently. The manager was net short until a few weeks ago. Then this took another pasting over the last couple of weeks. It's responded by changing its benchmark to a lower one (3 month rather than 12 month LIBOR) and changing its name..

That fund manager: :wall:

Shorts on the up then backs as a debt issue causes a dip!

StevieJ

dunstonh wrote: »

Simple answer is because it isnt one. The fund manager can more or less invest where he likes. He may be cautious sometimes but may take greater risk other times. The fund is actually higher risk than the L&G fund being discussed. At times it may look lower or higher but you have to risk rate it on what it may hold.

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It has been holding short positions on Sterling, I thought this was the type of area that Absolute return funds occupied?

E.G.
This is partly because we have positions in currencies and shorts in government bonds and equities, as well as our long positions in equities and commodities.

dunstonh

StevieJ wrote: »

It has been holding short positions on Sterling, I thought this was the type of area that Absolute return funds occupied?

E.G.
This is partly because we have positions in currencies and shorts in government bonds and equities, as well as our long positions in equities and commodities.

The Artemis fund can nearly do what it wants at different times. So, it can mimic an absolute fund if it wants or it can go totally away from that. Actively managed funds dont have the same level of constraint. This can see it bounce around the risk profile on a day to day basis.

wombat42_2

Artemis Strategic Assets looks groovy
http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/a/artemis-strategic-assets-accumulation

I am invested in precious metals and agriculture funds anyway, the Artemis fund is also heavily into precious metals and agri.

purch

You should also take into account that many of the Absolute Return style Funds will hold securities that are not easily priced, and/or cannot be revalued to NPV easily.

Many of the OTC securities it will hold will be hard to value, and thus big swings in price will happen, when and if an accurate price can be obtained.

This price movement will not have happened on one day, but will show as happening on one day as this was the day the Fund manager was able to accurately price the holdings.

sabretoothtigger

You'd want the fund to gain you something you dont have already surely.

I think its more like a hedge fund, he is shorting japanese bonds. I have no way of doing that myself.
I chose artemis for being well balanced I hoped so safe enough to buy in march near a possible market top. It still fell back a bit recently, I guess its impossible not to suffer some

StevieJ

sabretoothtigger wrote: »

You'd want the fund to gain you something you dont have already surely.

I think its more like a hedge fund, he is shorting japanese bonds. I have no way of doing that myself.
I chose artemis for being well balanced I hoped so safe enough to buy in march near a possible market top. It still fell back a bit recently, I guess its impossible not to suffer some

Me also. it is only down 2% though.

wombat42_2

partial recovery up 1.49% today
http://www.morningstar.co.uk/uk/snapshot/snapshot.aspx?id=F0000026NM&lang=en-GB

artha

wombat42 wrote: »

even more weird as it is supposed to be a low risk absolute return fund where market movements are supposed to be smoothed out. ........

Now where have I heard that before?........ah yes, with profits endowments

wombat42_2

Artemis Strategic Assets up 1,20% today
http://www.morningstar.co.uk/uk/snapshot/snapshot.aspx?id=F000002T6B&lang=en-GB