The fund’s managers draw on the insights of a team of 15 investment professionals, including a four person China team based in Hong Kong. The fund employs a bottom-up process, avoiding concentrations and keeping illiquid situations below a 15% level (i.e. companies with a market capitalisation below US$500 million). Emphasis is placed on face to face meetings with the management of prospective and current portfolio companies.
Nick Allan estimated that 94% of the portfolio could currently be liquidated within five days. Liquidity is tracked on a five day rolling basis and 100 day average volume.
The overall timeframe of a single stock investment is expected to be somewhere in the region of 12 to 24 months. The managers understand that investors have high expectations from emerging markets, and seek to achieve superior directional returns well beyond those achievable in developed equity markets.
Potential political risks, like the current instability in Korea, can be hedged using a put option. While the fund does invest in the China A-share market, much of its long/short China activity makes use of the more liquid market of Chinese companies listed in Hong Kong, and the Shanghai market can also be hedged using index products.
Sector exposure will vary, but at time of writing (January 2011), the primary areas were consumer stocks, technology, financials and to a lesser extent energy, primarily coal miners.
About the managers
Nick Allan and Jonathan Boyer are both experts in Asian equity investing, and co-launched Boyer Allan in Hong Kong in 1998. Prior to that, Allan worked in Kleinwort Benson’s securities business, setting up its Asian equities business in Hong Kong in 1992, while Boyer was the senior regional fund manager with Jardine Fleming, also in Hong Kong.
Key details
Fund name Boyer Allan Asian Long-Short UCITS Fund
Management company Boyer Allan
Promoter Bank of America Merrill Lynch
Status Open
Inception date 28th May 2010
Strategy
Kind of fund Hedge Fund
Strategy group Long/short
Region Asia ex-Japan
Asset classes Equities
Particulars
Currency EUR, USD, GBP
Share class name USD B (acc)
ISIN LU0511125477
Bloomberg ticker CAMVWIA LX
Domicile Luxembourg
Listing Luxembourg Stock Exchange
Fund structure SICAV
NAV calculation Daily
Liquidity Weekly
Day (if not daily) Wednesday
Notice (banking days) 4
Minimum investment 1,000,000
Minimum retail 100
Min. investment currency USD
Fees
Entry fee 0%
Exit fee 0%
Management fee 1.75%
Performance fee 20%
High water mark Yes
Hurdle rate No
Analysis
2010 Return 10.92%
Annualised return 18.99%
Annualised volatility (monthly data) 8.07%
Sharpe ratio (2%) (monthly data) 2.11
Correlation to S&P 500 (monthly data) 88.13%
Correlation to iBoxx (monthly data) -14.54%
Service providers
Administrator Société Générale Securities Services
Custodian Société Générale Bank and Trust
Auditor PricewaterhouseCoopers
Lawyer Linklaters
