MPG di­vests Vita Nova Hedge Fund out of eq­ui­ties

• MPG sees sub­stan­tial mar­ket cor­rec­tion, at very least

The Malta Business Weekly - - NEWS -

Man­ag­ing Part­ners Group, the in­ter­na­tional as­set man­age­ment group with a base in St Ju­lian’s, has al­most di­vested its Vita Nova Hedge Fund en­tirely out of eq­ui­ties in an­tic­i­pa­tion of a sub­stan­tial cor­rec­tion, or worse.

The Fund’s eq­uity ex­po­sure is now lim­ited to a small num­ber of hold­ings that will be ex­changed for short-dated debt se­cu­ri­ties to lock in value, se­cure a rea­son­able yield and en­able re­de­ploy­ment of cap­i­tal.

Jeremy Leach, chief Ex­ec­u­tive of­fi­cer at MPG, com­mented: “Eq­ui­ties are clearly over­priced based on their cur­rent yields. The in­evitable in­crease in in­ter­est rates and creep­ing in­fla­tion that we ex­pect to see on both sides of the At­lantic will only serve to weaken stock val­ues fur­ther and the only re­lease valve will be a sub­stan­tial mar­ket cor­rec­tion.

“Econ­o­mists and fi­nance in­dus­try pun­dits con­tinue to spec­u­late whether a cor­rec­tion is on the hori­zon and in our opin­ion, it is in­evitable, the only de­bate be­ing whether it will man­i­fest in a bear run or an out­right stock mar­ket crash.

“Our Vita Nova Hedge Fund is for­tu­nate enough to have a global macro in­vest­ment man­date and there­fore has the lux­ury of be­ing able to move be­tween as­set classes that of­fer great po­ten­tial for gains through ar­bi­trage.”

In 2017, MPG ac­cu­rately pre­dicted the mar­ket cor­rec­tion in Jan­uary this year, which it be­lieves could have been a great deal worse.

Leach added: “Cen­tral banks and mon­e­tary pol­icy com­mit­tees have been try­ing hard to sta­bilise an eco­nomic po­si­tion that is not sus­tain­able and in do­ing so they are just pro­long­ing the agony.”

Launched in 2014, the Vita Nova Hedge Fund aims to achieve long-term cap­i­tal growth by iden­ti­fy­ing short- to medi­umterm in­vest­ment op­por­tu­ni­ties with in­her­ent pric­ing weak­nesses and the po­ten­tial to im­prove over time. The in­vest­ment man­age­ment team may rely on eco­nomic fore­casts and anal­y­sis in re­spect of in­ter­est rate trends, macroe­co­nomic de­vel­op­ments, global im­bal­ances, busi­ness cy­cles and other broad sys­temic fac­tors that may lead to ar­bi­trage and al­pha op­por­tu­ni­ties. The fund has de­liv­ered 42.11% per­for­mance over the past 12 months and has achieved an­nu­alised re­turns of 24.36% since its launch in 2014. It is one of the top-per­form­ing funds in its sec­tor.

MPG is an award-win­ning busi­ness, hav­ing been named the 2018 Al­ter­na­tive In­vest­ment Firm of the Year – Europe by The Eu­ro­pean busi­ness pub­li­ca­tion, while its High Pro­tec­tion Fund won the Best Diver­si­fied Fund (Five Years) and Best in In­sur­ance-Linked In­vest­ments cat­e­gories in the 2018 Cor­po­rate USA To­day awards.

MPG is a multi-dis­ci­plined in­vest­ment house that spe­cialises in the cre­ation, man­age­ment and ad­min­is­tra­tion of Cay­man Is­lands reg­u­lated mu­tual funds and is­suers of as­set-backed se­cu­ri­ties for SMEs, fi­nan­cial in­sti­tu­tions and pro­fes­sional in­vestors. The wider Group cur­rently has over $500m as­sets un­der man­age­ment.

Newspapers in English

Newspapers from Malta

© PressReader. All rights reserved.