Gartmore's AlphaGen Capella European long/short hedge fund lost investors money in June, its first n...
Gartmore's AlphaGen Capella European long/short hedge fund lost investors money in June, its first negative return since launch in November 1999.
The slight fall brings to an end what is believed to be a record among European long/short managers of 19 straight months of positive returns.
For euro investors, the record will show the fund recorded a flat June, returning 0%, while dollar investors lost 0.1%. The fund bounced back to produce 0.4% in July and 0.5% this month to 13 August.
Roger Guy, manager of the fund, was philosophical about the month's negative turn.
'Over the past couple of months, we have found the conditions as extreme as they can be, with massive volatility and intra-day price movements,' he said.
'In June, we didn't go out with a bang but it was not good to lose money. Anything that had done well in the previous part of the year got killed.'
Poorer than expected performance from defensive utilities hurt the $1.2bn fund. Overall, it lost 0.8% on the longs but made 0.7% on its shorts.
Guy was short cyclicals and insurance firms, companies such as Bayer, Axa and Aegon. He believes there remain good shorting opportunities within insurance firms, while favouring oils and autos on the long side.
Guy kept gross exposure at 30% to 40% in June and has maintained the portfolio with fewer than 50 holdings.
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Invested from 2006-2011