Australian asset manager Antipodes Partners has unveiled a Ucits version of its long/short global equity strategy, the Antipodes Global Fund, following strong demand from European and Asian investors.
The Antipodes Global Fund – Ucits has been launched with $125m (€105.6m) of assets. It forms the first sub-fund of the Pinnacle Icav, a Dublin-domiciled Ucits fund range distributed by Australian multi-boutique platform Pinnacle Investment Management.
The original strategy was launched on 1 July 2015. Since inception to 30 June 2017, the fund has returned 28.9% in USD terms, against the MSCI AC World Net Index return of 14.4%.
The Antipodes Global Fund – Ucits consists of a high conviction portfolio holding around 30-60 major long positions, launched with a highly differentiated portfolio versus the index and peers. Antipodes Partners’ long/short strategy has its current largest net allocations to developed Asia, developing Asia and Western Europe – with a minor net long to the US.
The 13-strong Antipodes Partners investment team combines sector specialists and a research team with expertise across multiple geographies and industries. It manages some $3bn (€2.56bn) in global equities. The Australian boutique has also opened a London research office, run by senior investment analyst Chris Connolly, and expects to strengthen its London team in the near term.
Antipodes Partners’ founder Jacob Mitchell (pictured) said: “At the core of our investment philosophy, we seek in our long investments both attractively priced businesses that offer margin of safety, as well as investment resilience characterised by multiple ways of winning. The opposite logic applies to our shorts. While the investment case will always be predicated on idiosyncratic stock factors such as competitive dynamics, product cycles, management and regulatory outcomes, we seek to amplify the investment case by taking advantage of style biases and macroeconomic risks and opportunities.”
He added: “Central bankers have somewhat cornered themselves. Increasingly, political and economic pressure to normalise interest rates or withdraw stimulus is likely to trigger volatility and widen credit spreads. While the low-volatility regime may endure, investors have grown too comfortable with the central bank reaction function, extending the illusion of stability.”
Mitchell underlined that the team avoids expensive versions of the bond proxies as long investments while increasing its shorts on the beneficiaries of the low rate world.
“We are encouraged by the growing valuation dispersion within and across markets – across region, sector and factor – as we think it is indicative of broadening pragmatic value opportunities, both long and short. Flexible and risk-aware investment strategies seeking idiosyncratic alpha, rather than passive beta, should outperform in an environment where volatility awakens from temporary hibernation.”