Top Picks of the Month – April 2021
We show here a selection of funds that might be of interest to you. They were chosen either for their outstanding performance, which is likely to continue, or for their potential for attractive returns or diversification given current and expected market conditions.
- Mix-Assets: Ninety One Global Multi-Asset Income
The fund is a core defensive total return fund. It is designed for cautious long-term investors who seek regular and stable income from a diversified asset-mix (equities, high yield and investment grade credit, govies, EMD, FX carry, property, infrastructure, …). It can be used as a potential alternative to absolute return or fixed income funds as source of income. It targets a portfolio yield of 4-6% gross of fees per annum on average, with compounding attributes. Resilient portfolio built from the bottom-up and actively managed with tactical risk hedging. Very consistent track record with less than 5% of annualized volatility historically and no negative calendar year since inception in 2013 in USD.
- US Long/Short Equities Small & Mid-caps: Prosper Stars & Stripes
The fund is a fundamental bottom-up long/short equity focused on US small and mid-caps. Structural inefficiencies in smaller stocks (less passive investments, less hedge fund competition, lower analyst coverage, higher dispersion of returns) enable potential higher alpha generation on both sides of the portfolio. Limited use of leverage with net exposure ranging from 30% to 50% since inception, typically 80% longs and 40% shorts. Opportunistic allocation to all sectors over time, no specific sector bias. Solid capital protection in each markets’ sell off during the last 5 years. Strong performance on the short side has been a consistent differentiator relative to peers. The long book has significantly outperformed the Russell 2000 TR index adjusted for the net exposure.