Absolute Returns: Who is adding alpha in Asia?

BDT Invest Asian Focus

The BDT Invest Asian Focus and sister fund BDT Oriental Focus have consistently been near the top of the absolute return sector over the past year on cyclical momentum.

Managers Rob Brewis, Simon Dobson and Henry Thornton are arguably strongest on long exposure, however, and the fund has suffered in recent volatility.

The concentrated portfolio runs 32 stocks, with 63% of assets in the top 20. Cash and equivalent allocation also rose over the course of the month however, to 15%.

Stock asset allocation remains overwhelmingly directional, with around 70% of assets in financial stocks, consumer discretionary and materials.

A substantial and unhedged allocation to Japan has hurt, and the stronger yen has had an impact on the 30% of assets allocated to Japanese companies. The managers added that they expected the yen to weaken significantly from here.

Tiburon Taipan

Managed by Tiburon Partner’s Mark Martyrossian and Mark Fleming, the fund offers a highly cyclical, leveraged take on the Asian recovery via a concentrated 44 stocks.

Property, materials and energy, technology, consumer discretionary and financial service businesses predominate, in a portfolio running 80.55% long exposure.