Funds Hub

Money managers under the microscope

Merrion profits from UK housing malaise

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October may have been a strong month for markets (and therefore, by implication it seems these days, for hedge funds), but that hasn’t stopped some short-sellers from profiting.

Mike Nicol, manager of the Merrion European Absolute Return hedge fund, says he did well out of new short positions in housebuilders Barratt Developments  and Taylor Wimpey. Both fell around 21 percent during the month, while the FTSE 100 rose 2.2 percent.

“The UK housing market continues to struggle and we believe that this malaise will continue for some time,” says Nicol.

HFRX’s short bias index is down 17.4 percent so far this year while the average hedge fund is up nearly 6 percent to end-September, according to Dow Jones Credit Suisse (and probably more after October) compared with the FTSE 100′s 8 percent gain. At least Merrion’s update indicates hedge funds don’t have to be limited by overall market movements.

Back to basics

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Liverpool Victoria Asset Management managing director Ann Roughead is a woman on a mission.

She is trying to sell her “no frills, back to basics” investment style to UK investors and as she prepares to take her business to UK institutions next year, she insists the existing UK investment model of churning out products and ideas is a broken one.

HSBC fund arm CEO is a Russia bull

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Russia may be lagging other emerging markets, but the outlook for commodity prices suggests outperformance is not far off, John Flint, chief executive of HSBC Global Asset Management tells Insider.

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