Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Dalton launches enhanced European equity long/short equity fund

Dalton launches enhanced European equity long/short equity fund

Dalton Strategic Partnership has soft-launched a leveraged version of its flagship European equity long/short fund to achieve increased market exposure.,

The London-based boutique formally launched the fund at the end of 2013 to little fanfare.

It follows the same investment guidelines used by veteran investor Leonard Charlton on the Melchior Selected Trust – European Absolute Return fund.

However, the version, known as the Enhanced European Absolute Return fund, operates with 1.8 times the market exposure of the existing fund. Both funds are Luxembourg-domiciled.

Commenting on the launch, a spokesperson for Dalton Strategic Partnership, told Citywire Global: ‘Towards the end of last year we saw a fundamental change in equity market conditions, most notably that short stock selection was starting to work, and bad news was being reflected in share price behaviour.’

‘This was in contrast to much of the preceding two years when the market was awash with liquidity.  The firm felt this was a good time for investors to gain exposure to a leveraged version of the core European long short strategy that Leonard had been managing since 2006.’

In the six months since launch, the strategy has accrued $80 million in assets, while the firm’s overall European equity long/short stable of funds has grown from $290 million to over $600 million.

Lead manager Charlton, who will oversee both funds, said the new enhanced version would suit investors seeking to make returns during the end of a bull market run.

‘This is when many companies are mispriced to the upside and markets are complacent. This is where we believe markets are today. Bull markets create bear markets – and bear markets are my thing,’ he said.

The Melchior Selected Trust European Absolute Return fund lost 2.07% over the three years to the end of June 2014. This is while the average manager in the Citywire Alternative Ucits Long/Short Equity sector returned 11.25.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter