The fund follows a buy-and-hold strategy predicated on exclusive access to management and detailed stock-specific analysis. The fund also makes use of Tosca Metriks, a proprietary company analysis methodology used to help forecast corporate earnings. Acquired by Toscafund in 2008, it uses freely available government data to help inform forecast analysis.
The fund seeks investments where the dynamics of individual companies or entire sectors are changing. Because these names are under-researched, it will aim to take positions ahead of broader interest in the market. Part of the investment process also focuses on the sales of products themselves. From this, the fortunes of producing companies can frequently be extrapolated in advance of any earnings reports and subsequent share price moves. Individual funds within the Tosca complex also draw on macro research available to all portfolio managers within the firm.
The core of the fund will typically be composed of 25-30 long positions with a medium- to long-term time horizon (two to three years). Gearing is achieved through net rather than gross exposure. Unwanted risks are ameliorated via hedging tools, typically single stock shorts.
The fund produces a daily risk management report for the portfolio manager, which includes analysis of liquidity and diversification within the portfolio. Risk parameters within the fund are monitored on a daily, real-time basis. Single sector exposures are limited to a maximum of 30% of NAV. The fund professes to be able to liquidate 80% of its longs within 21 days and 90% of long positions within 63 days. Over 90% of short positions can be liquidated within five days.
About the managers
The fund is managed by Martin Hughes, the founder of Toscafund, supported by Matthew Siebert and Dan Cane from the Metriks team, and Jodie Reilly. Hughes founded Tosca in 2000, prior to which he worked for Tiger Management Corporation, the London advisory arm of New York hedge fund Tiger Management.
Key details
Fund name DB Platinum Tosca Mid Cap Equity Fund
Management company Toscafund
Promoter Deutsche Bank
Status Open
Inception date 14th May 2010
Strategy
Kind of fund Hedge Fund
Strategy group Long/Short
Region Europe Developed
Asset classes Equities
Particulars
Currency GBP
Share class name I1C
ISIN LU0480292720
Bloomberg ticker DBTMI1C LX
Domicile Luxembourg
Listing Luxembourg Stock Exchange
Fund structure SICAV
NAV calculation Daily
Liquidity Daily
Notice (banking days) 1
Minimum investment 100
Min. investment currency GBP
Fees
Entry fee 4%
Exit fee 0%
Management fee 1.45%
Performance fee 20%
High water mark No
Hurdle rate No
Analysis
2010 return 15.45%
Annualised return 17.63%
Annualised volatility (monthly data) 16.7%
Sharpe ratio (2%) (monthly data) 0.94
Correlation to S&P 500 (monthly data) 21.04%
Correlation to iBoxx (monthly data) -2.88%
Service providers
Administrator RBC Dexia Investor Services
Custodian RBC Dexia Investor Services Bank
Auditor Ernst & Young
