You are here: cherry > Press releases for November 2010 > Bloxham Midas Global Absolute Return Fund unveils counter-volatility strategy to combat potential market turbulence

16 November 2010

Up to 100 % cash position if necessary to combat volatility. Target minimum return of 8% to 10% per annum with volatility < 35% of the market. AMC 1.5% Retail share class (rebate 0.75%), AMC 0.75% Institutional Share Class. If hurdle rate not achieved = AMC rebate 0.5% and no performance fee. Kevin McConnell, Fund Manager of Bloxham’s Midas Global Absolute Return UCITS iii Fund, today reveals key strategies designed to fight liquidity difficulties in the market going forward into 2011. “Our portfolio can go up to 100% in cash when markets are highly volatile and uncertain,” said McConnell. “Over 2010 we have seen high positive correlation between stocks making it a very dangerous market-place generally - and one where many long/short equity absolute return funds have struggled. “We believe this newer strategy will provide consistent absolute returns with lower volatility, as it can identify trends long before other established techniques and take advantage of overbought/oversold stocks globally,” he added. Bloxham’s Midas Global Absolute Return Fund is based on a proprietary ‘Midas’ model developed in-house since 2002 by Kevin McConnell and his team. Today the model analyses stocks in a very advanced, technical screening mechanism that has been ‘bomb proofed’ through the crash of the past few years. This screening mechanism provides a daily shortlist of stocks that give us high levels of conviction. “Stocks tend to fall into three areas,” said McConnell. “Oscillation, where stocks tend to trade in a range and become overbought or oversold, secondly, where stocks break into trend on an upside or downside basis, and thirdly, where stocks are in confusion. “The model has evolved since 2002, designed to be able to identify stocks in oscillation (overbought or oversold) and stocks going into positive and negative tend,” he said. “This is very powerful although the stratetgy is not ‘black box’ in that the Bloxham team is very macro aware of the big events happening in the market-place. “Rather, we would prefer to describe it as having a human macro overlay on a highly technical driven underlying strategy. The stock selections come from the proprietary ‘Midas’ model but the sanity check or overlay is the human intervention and experience that allows us to mix the portfolio to best suit the market conditions we are currently dealing with”.... to view full details please download document below

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