The fund’s manager follows a wide definition of global resources, focusing on not just the usual mining and energy sectors, but going further afield into sectors like chemicals, construction materials, and pulp and paper. “There is no need to call any commodity aggressively,” explains co-portfolio manager Duncan Goodwin. The fund consequently invests in a universe of approximately 800 highly liquid stocks on a global basis. This approach also gives the mangers a good perspective of how companies are likely to perform, as they also speak to suppliers further down the value chain, and customers further up it.
A good example of the advantages that can accrue is the picture generated by following oil producers, oil services companies, and utilities that buy hydrocarbons. Because of the global nature of the resources sector, the managers can also pinpoint inefficiencies in the sector, for example within global refining capacity.
Short themes stem from similar insights, particularly when it is deemed a company is likely to suffer earnings downgrades as a result.
“There is no need to focus simply on small cap mining or small cap energy companies,” explains Goodwin.
The fund is highly liquid, and the managers estimate they can exit 99% of the portfolio within two trading days. The fund bases its liquidity management on daily turnover of the stocks it invests in, and the offshore vehicle experienced no liquidity problems during 2008.
The fund is supported by two portfolio managers and a dedicated team of eight resources specialists. In addition, like other Martin Currie funds, the team can draw on the expertise of other portfolio management teams and group analysts around the world.
About the managers
Duncan Goodwin was formerly director of equity research for oil and gas stocks at Merrill Lynch before joining Martin Currie in 2005. Co-manager Chris Butler has been with the firm since 1989 and is its sector leader for materials. Butler has also served as Martin Currie’s head of sector research.
Key details
Fund name Martin Currie GF - Global Resources Absolute Alpha
Management company Martin Currie Investment Management
Promoter Martin Currie
Status Open
Inception date 29th September 2010
Strategy
Kind of fund Hedge Fund
Strategy group Long/Short
Region Global All
Asset classes Equities
Particulars
Currency EUR, USD, GBP
Share class name Ordinary US$
ISIN LU0541659602
Bloomberg ticker CAMVWIA LX
Domicile Luxembourg
Listing Luxembourg Stock Exchange
Fund structure SICAV
NAV calculation Daily
Liquidity Daily
Notice (banking days) 1
Minimum investment 250,000
Minimum retail 10,000
Min. investment currency USD
Fees
Entry fee 5%
Exit fee 0%
Management fee 1.5%
Performance fee 20%
High water mark Yes
Hurdle rate No
Analysis
2010 return 5.4%
Annualised return 10.41%
Annualised volatility 7.3%
Sharpe ratio (2%) 1.15
Correlation to S&P 500 11.52%
Correlation to iBoxx -10.44%
Service providers
Administrator State Street Fund Services
Custodian State Street Custodial Services
Auditor Deloitte
