The recent launch of the Jupiter Europa Hedge Fund marks the fourth in the range of hedge funds offe...
The recent launch of the Jupiter Europa Hedge Fund marks the fourth in the range of hedge funds offered by Jupiter International and the group plans to launch more products depending on the fund management talent it can harness.
Europa, a pan-European long-short equity fund that is listed on the Irish Stock Exchange, is managed by Stephen Pearson. Pearson joined the Jupiter Group from Sloane Robinson in July this year and is also responsible for Jupiter's hedge fund business.
Pearson said the new Jupiter Europa Hedge Fund follows the successful launches over the past two years of Hyde Park (managed by Philip Gibbs), and Carme (managed by Justin Seager). Jupiter has also launched a fund of hedge funds, that is managed by the team recruited from Lazards and headed up by John Chatfield-Roberts.
Pearson said further hedge fund launches would depend on what internal fund management talent could be used and what external recruitments are made. He confirmed other long only fund managers in the Jupiter group were keen to run hedge funds and that the company was also looking outside for new fund managers.
'We do not decide that we want, for example, an Asian fund manager and then look to recruit a manager. Rather we see what good managers are around and then launch a product to suit their skills,' he said.
The Jupiter Europa now contains a portfolio of around 25 holdings but the manager intends to build this up to maximum of 40-60 holdings.
Pearson said he is currently long of recovery and restructuring type situations. He is therefore focusing on financial restructuring in the mobile and fixed line telecommunications sector. He also has a number of plays in operational recovery value stocks such as automobiles and banks.
'Meanwhile, I am short of some technology stocks that I consider to be overvalued. These tend to be mid to larger caps ' we are not really into small caps at this stage,' he said.
'We also have a couple of pair trades in insurance and in oil.'
Pearson spent six years at Sloane Robinson, and over that time achieved strong returns. The SR Global Fund Europe (dollar class) had a compound annual growth rate of 12%pa from launch in January 1994, while the euro class had a compound annual growth rate of 23% from its launch in February 1996, until Pearson's departure at the end of 2000.
He was also manager of the SR Pan European Investment Trust, a long-only vehicle with an absolute return mandate, which had a compound annual growth rate of 31% in net asset value per share between January 1995 and December 2000.
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