ELEVA Absolute Return Dynamic

Investment Objective

The ELEVA Absolute Return Dynamic fund seeks to achieve a positive absolute return over the medium term through capital growth by investing primarily in listed European equities and equity-related securities on both a long and short (through FDIs) basis, with at least 50% of European equities.

Reference Index

N/A

Latest Meeting Note

Meeting 09 Jul 2024

The ELEVA Absolute Return Dynamic fund is managed by the same team as the soft-closed Europe fund, with several subtle changes. The strategy aims to leverage ELEVA's skills and expertise in European equities while also allocating to inte...

The ELEVA Absolute Return Dynamic fund is managed by the same team as the soft-closed Europe fund, with several subtle changes. The strategy aims to leverage ELEVA's skills and expertise in European equities while also allocating to international equities. The core premise remains consistent, focusing on capturing alpha from both single stock long and short positions while limiting market risk. Net exposure is a key differentiator, with the dynamic fund ranging from -20% to 100% (though expectations are more likely between 10%-70%). This range is driven by fundamental idea generation, top-down analysis, and market volatility. The fund also targets an annualised volatility of 8-12%. The investment philosophy remains unchanged. The long book targets family or foundation-owned businesses, companies with a differentiated business model in mature industries, and companies undergoing significant management or shareholder changes. The short book consists of companies in long-term challenged industries, companies at a negative inflexion point, or those with elevated expectations. Additionally, the credit market is utilised as a tool for evaluating companies on both sides of the book. The process begins with the filtering of 21,000 global equities, with the long book requiring a market cap of over €5bn or, if not, sufficient top-line growth and a strong balance sheet. ESG exclusions help to narrow this further (given it is Art 8) to create a focus list. A bottom-up fundamental analysis process is undertaken, combined with market perception analysis (e.g., meeting sell-side analysts, assessing credit market sentiment), culminating in the creation of price targets with a two-year horizon. Portfolio construction targets the best mix of stock-specific opportunities at any given time, with stock weightings based on expected return, risk/reward profile, and conviction. Typically, they expect to hold 50-60 names on both the long and short sides of the book and will use index futures to complement single stock shorts where appropriate.

Performance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
2023 0.4 0.8 0.9 0.8 0.5 0.1 1.0 0.9 0.8 0.9 0.9 0.0 0.6
2022 0.3 0.4 0.4 0.4 0.8 0.8 0.3 0.3 0.4 0.4 0.7 0.6 0.7

or Register for Free

  • Gain access to comprehensive data and information regarding alternative UCITS funds
  • Keep track of performance, flows, and fees trends
  • Access the latest thematic research written by our team of expert in-house analysts
Current Site Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.