Blackrock Hedge Selector and Liontrust European absolute return fund

moneylover

In yesterdays Sunday Times there was an article about spread betting and CFDs which I read as I have never understood how they worked. I certainly wouldnt want to attempt this type of trading myself but I was interested in the last paragraph:

"If you would rather have an expert do the work for you, Mick Gilligan at Killik recommends absolute return funds and suggests the Liontrust European Absolute Return Fund which uses CFDs for some of its trades and is up 8% this year. Gilligan also tiips the Blackrock Hedge Selector which uses a similar strategy and is up 26% this year"

I know that absolute return funds are a bit of a ragback and some have performed very badly but I dont remember seeing these funds tipped in anything I have read lately and am amazed at the performance. I would just be interested in comments becasue the first fund has a pretty good return and the second is amazing. Is the risk with the second that it can fall off a cliff overnight?

qpop

Couldn't find any Trustnet data on the Blackrock fund, from a brief search.

Check Liontrust out:
http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=FRFQ5&pagetype=overview

Yes, they've grown a lot this year, but they had a much lower starting point than the sector! The graph says it all really.

Ark_Welder

Blackrock Hedge Selector is a Jersey-incorporated investment company (i.e. and IT for all intent and purpose). It has 2 share classes, being a cash fund and a UK smaller companies. The latter is a feeder fund into a hedge fund.

http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=GOFG2&univ=T

If I was interested in investing in either the Blackrock or Liontrust offerings then I my primary interest would be in how the underlying assets fitted in with my portfolio rather than the method of achieving the return. The risks with both is that their amazing returns could be reversed amazingly quickly if markets reverse faster than the manager can act.

Micky_Mouse

Looking at HL's fund research, the Liontrust fund is only up just under 10% over the past 12 months, although it has undoubtably out-performed its peers recently. However you need to take into account performance fees and high TER's.

Jegersmart

Micky_Mouse wrote: »

Looking at HL's fund research, the Liontrust fund is only up just under 10% over the past 12 months, although it has undoubtably out-performed its peers recently. However you need to take into account performance fees and high TER's.

Really? Performance is usually shown after TER. Which performance fees are these?

J

Micky_Mouse

Jegersmart wrote: »

Really? Performance is usually shown after TER. Which performance fees are these?

J

Whatever. I wouldnt touch it with a bargepole but congratulations on being a !!!!!!.