Key Points
Data as at 30 September 2008
Over the quarter our winners were mixed between short positions in pub operators, trades in house builders (now all sold) and an investment in AstraZeneca. Losers were divided between short positions in Media and Hotels and long positions in HBOS, Royal Bank of Scotland and Anglo American. We are particularly long Financials and short consumer-related plays.
The extraordinary events in the equity and credit markets, including HBOS running for safety into the arms of Lloyds and the end of the independent investment banking model on Wall Street make us believe the worst is over in terms of markets, if not economies: asset managers are sitting on record levels of cash; normally risk-seeking hedge funds are hiding in relatively secure money market funds; the US government is launching the multi-billion dollar Troubled Asset Relief Program to mop up toxic financial waste; and in the UK the historic dividend yield on equities is higher than the return you can get from buying gilts – usually an excellent buy signal. Of course the scale and extent of the financial system’s problems will swamp many insecure boats and so we will have to pick our way carefully through the wreckage, but we have radically increased our net exposure in expectation of a bounce in markets.
Annual
Report and Accounts (as at 31/12/07)
- Interim
Report and Accounts (as at 30/06/08)
Key Facts
| Bloomberg Code | ARTUKHG KY Equity |
|---|---|
| Type | Open-ended, Cayman incoporated, Dublin listed, European equity market neutral |
| Launch | December 2004 |
| Base Currency | €/US$/£ (depending on share class) |
| General Information | Monthly subscription (with 2 days notice) and redemption (with 10 days notice) |
| Share Class | A | B | C |
|---|---|---|---|
| Denominated in: | US$ | Euro € | £ |
| Liquidity: | Monthly | Monthly | Monthly |
| Listing: | Dublin | Dublin | Dublin |
| Minimum Investment: | US $100,000 | € equivalent of US $100,000 | £ equivalent of US $100,000 |
| Management Fee: | 1.5% p.a. | 1.5% p.a. | 1.5% p.a. |
| Incentive Fee: | 20% of absolute performance with high water mark and equalisation | 20% of absolute performance with high water mark and equalisation | 20% of absolute performance with high water mark and equalisation |
Data as at 30 September 2008
NAV |
% 3 Months |
% 1 Year |
|
| £ | 136.8 |
-2.3 |
0.6 |
| $ | 130.7 |
-3.6 |
-2.2 |
| € | 127.9 |
-2.7 |
-0.5 |
Artemis UK Hedge Fund NAV (£)
Source: Datastream
Performance
| £ Nav | 136.8, down 2.3% |
|---|---|
| US$ Nav | 130.7, down 3.6% |
| € Nav | 127.9, down 2.7% |
| Funds Under Strategy | $5m |
| Net Exposure | 81% |
| Gross Long | 104% |
| Gross Short | -22% |
| Gross Exposure | 126% |
| Annualised Return | 8.7% |
| Sharpe Ratio | 0.4% |
| Sortino Ratio | 0.5% |
Source: Internal. Period for Fund performance: 1 December 2004 - 30 September 2008. Past performance is not a guide to future performance.
Historical Performance - Sterling Class
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sept | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2004 | 0.8 | 0.8% | |||||||||||
| 2005 | 1.4 | -0.5 | 0.3 | -1.5 | 2.0 | 1.9 | 3.8 | 0.0 | 2.8 | -1.5 | 2.8 | 2.6 | 14.8% |
| 2006 | 2.0 | 1.0 | -1.8 | 1.1 | -1.4 | -0.3 | 1.4 | 1.5 | 0.2 | 2.4 | 1.2 | 2.3 | 9.9% |
| 2007 | 0.2 | -0.4 | 0.8 | -0.2 | 0.1 | 0.5 | 1.2 | -2.2 | 4.6 | 2.6 | -1.1 | 0.7 | 6.8% |
| 2008 | -3.8 | 1.7 | -0.3 | 5.2 | 0.6 | -0.2 | -0.1 | 1.2 | -3.4 | 0.6% |
This document has been issued by Artemis Investment Management Ltd, which is authorised and regulated by the Financial Services Authority. It does not constitute an offer, invitation or solicitation to subscribe for shares which may only be subscribed pursuant to and on the terms of the offering memorandum published by Artemis UK Hedge Fund Ltd (the 'Fund'). The Fund is an unregulated collective investment scheme the promotion of which in the UK is restricted by Section 238 of the Financial Services and Markets Act 2000. Accordingly, the Fund may only be sold to institutional and other investors who have experience of alternative, unregulated investments such as hedge funds. It is not generally considered suitable for private investors.
The value of investments, as well as the income from them, may fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. The Fund's anticipated use of borrowing, leverage and derivative instruments carries a higher risk of loss where relatively small price movements in these instruments may result in substantial loss to the Fund.
