Among the funds that Alkimia Capital recommends to the clients in the last weeks, we highlight the following ones:
PERSHING SQUARE HOLDINGS
Equity fund that invests in the United States managed by Bill Ackman. He is an activist investor who likes a concentrated portfolio of large companies based in the US that have a stable FCF generation and growth, with high entry barriers, power of fixing prices thanks to their brands, unique and irreplaceable assets (sometimes intangibles), long term contracts and/or a dominant position in their market/niche. He has the patience to wait to buy until the price has an enough margin of safety from the intrinsic value of the companies. He has been managing this strategy since 2004 with an annualized return of around 14% (compared to the S&P 500 with a return of 8% during the same period).
Alkimia Capital initially recommended this fund during 2017, since the performance during 2015 and 2016 had been well below the expectations; therefore, we had the opportunity to invest alongside one of the best investors we can find. Despite an excellent 2019 with a return above 51%, at this moment we still have the opportunity to invest with a 30% discount of NAV.
Helium Performance is a fund managed by the French independent management company Syquant. The manager throws the fund in the year 2013, making use of different alternative strategies, some of which already were part of the first fund Helium Fund since 2005. The fund tries to obtain a long-term return higher than 6%, assuming volatility levels lower than 4%, combining strategies Merger Arbitrage, Event Driven and Systematic Long/Short. The main objective is to preserve the capital by following an independent return profile of the general market evolution.
Alkimia Capital began in the year 2016 recommending the fund to some clients with a cautious investment profile, but that could tolerate alternative UCITS funds in their portfolios. The main reason was to look for alternatives with a traditional fixed income, since it offered an asymmetric risk against the traditional investor (low potential and high risk).
RUFFER TOTAL RETURN
Funds managed by Ruffer, an English management company created by Jonathan Ruffer in 1994 with a multi-active approach. The manager’s main goal is the preservation of the capital at times of tension, but in the long term they achieve a good return with a level of moderate risk. To accomplish this, it invests in all types of assets, ranging from variable income through bonds linked to inflation and gold, in order to obtain a balanced portfolio that can cope with any market environment. Its main strength is an independent vision of the forces that move markets and a great skill in adjusting the portfolio to take advantage of it.
Alkimia Capital recommends this fund to its customers with a balanced investment profile since 2016. Its main interest is the protection before the macroeconomic risks and the evaluations of different assets, without renouncing to a good profitability. The annualized return has been higher than 8% since the 2000.
The Ruffer Total Return Fund has beaten the majority of its competitors over the last few years, highlighting especially in difficult years as 2008 at global level and the 2011 in Europe.
BAKERSTEEL PRECIOUS METAL FUND
Fund managed by specialist management company BakerSteel, founded in 2001 and with an excellent track record investing in this “niche” market. Its investment team (which are the founders of the company) is composed of mining analysts and engineers with more than 25 years of experience in the market, which gives them a differential knowledge with respect to their competitors. Its managed funds have been able to beat all the competitors loosely, protecting in a significant way in the years with bad returns for the category and rising as the most in the positive years as in 2019 where the fund was nº1 of the category with an increase of + 54%.
It invests in mining companies, in this case mainly gold but also silver. With a concentrated portfolio of 30/40 companies in the sector, they believe that their knowledge of companies allows them to differentiate themselves from the competition, to know the mines that can truly benefit from the underlying increase and avoid the risky ones.
Alkimia Capital, in the construction of its portfolios, combines assets linked to equity risk with others that may also serve in more difficult periods but without sacrificing their good return. This fund was incorporated at the end of 2018, reaching an agreement with the management company to launch a class with low commissions and in EUR.