19 Apr 2010
Pictet Targeted Funds (LUX)-Corto Europe is a UCITS III European long/short equity fund registered for distribution in the EU which invests mainly in Continental Europe.
The Luxembourg-domiciled long/short European equity fund is based on the same strategy followed by Corto European Fund, a Cayman Island registered equity long/short fund launched in August 2006. This fund has produced a net annualised return of 7.6% to February 28, 2010 compared with a fall of 4.6% for the MSCI Europe index over the same period.
Nils Francke and Philippe Sarreau are the senior portfolio managers with equity analyst David Dufour. Francke and Sarreau have been investing together using a long/short strategy for five years and in the European market for over 12 years.
The fund aims to achieve long term capital appreciation combined with a degree of downside protection. Stock-picking through fundamental research and contact with company management is at the heart of the strategy.
The managers focus on identifying changes that create triggers for long-term performance at a stock or sector level, including new management or changes in investor behaviour. The fund will concentrate on mid-cap companies with less than €5 billion market cap. This means a clear over-representation over time of mid cap companies, although the fund does not exclusively invest in this type.
The Luxembourg-domiciled long/short European equity fund is based on the same strategy followed by Corto European Fund, a Cayman Island registered equity long/short fund launched in August 2006. This fund has produced a net annualised return of 7.6% to February 28, 2010 compared with a fall of 4.6% for the MSCI Europe index over the same period.
Nils Francke and Philippe Sarreau are the senior portfolio managers with equity analyst David Dufour. Francke and Sarreau have been investing together using a long/short strategy for five years and in the European market for over 12 years.
The fund aims to achieve long term capital appreciation combined with a degree of downside protection. Stock-picking through fundamental research and contact with company management is at the heart of the strategy.
The managers focus on identifying changes that create triggers for long-term performance at a stock or sector level, including new management or changes in investor behaviour. The fund will concentrate on mid-cap companies with less than €5 billion market cap. This means a clear over-representation over time of mid cap companies, although the fund does not exclusively invest in this type.
“The strategy aims to offer an asymmetric return profile, enabling investors to capture most of the upside market performance while protecting capital against the risk of declining markets,” commented Francke.
