The fund was launched at the end of September 2010, returning 10% to the end of last year, and uses a market neutral long/short pairs-trading strategy. Kastner chooses between 25 and 40 pairs of stocks, equally weighted and in the same sector to give the fund the best chance of achieving a market and a sector-neutral stance.
With the caveat of the long position outperforming the short position, the fund will generate a positive return irrespective of market movements.
The sterling share classes are currently hedged against the base euro currency.
Armstrong Investment Managers is one of the early investors into the sterling share class, with James de Bunsen, a portfolio manager at Armstrong IM explaining: “We like the JB Absolute Return Europe Equity Fund for a number of reasons, chiefly its disciplined focus on achieving beta-adjusted market and sector neutrality.
“There are too many funds in the long/short equity universe that simply provide investors with a low beta exposure to equities at a high cost, without adding any true diversification benefits.”
Fund facts
Fund name Julius Baer Multistock – Absolute Return Europe Equity Fund
Launch date 30 September 2010
Fund volume €145.6m (£120.7)
Fund domicile Luxembourg (a Sicav)
Legal structure SICAV according to Luxembourg law
Base currency Euro
Benchmark Libor EUR 3 months
Fees 1.2% AMC with 10% outperformance fee
