1. The Wire
ISSUE NO 9: 30 TH MaRcH 2011 THE WEEKLY INVESTMENT REVIEW
In this edition of The WIRE…
We introduce Odey Asset Management LLP, the appointed Investment Manager for the HC CAERUS
UK and European Equity Fund which will be launching in March 2011. In next week’s edition we will
be providing an update on the CAERUS ISA which will be launching on 28 March 2011.
The ideal choice for caERUS
The HC CAERUS UK and European Equity Fund is designed for Clients who are willing and able to take more risk with the potential to
generate better returns. Odey Asset Management will act as Investment Manager for our first Focused Fund and we wanted to ensure
that it was managed by experts with a consistent track record, Odey Asset Management was the obvious choice. Odey’s portfolio managers
draw on research and use their judgement to actively manage their portfolios, picking stocks that they believe will perform. Over the long
term this approach has worked well, and consistent returns have earned Odey a strong reputation in the City and beyond.
Expertise based on active fund management
Odey Asset Management was founded in 1991, with a primary focus on active fund management
to preserve capital and generate superior returns for Clients. At a time when most other Investment
Managers were aiming to simply follow the performance of the market, the group’s founders
believed that this was taking the skill out of investment management. Now more than 20 years
later, Odey Asset Management still believes in generating consistent returns. Odey Asset
Management currently manages US$7.3bn of which US$2.6bn is Hedge Funds and US$4.7bn1
is Institutional, Retail and Pension Fund portfolios.
an industrialist’s approach
Founding partner Crispin Odey has what he calls an industrialist’s approach to investing. He looks for out-of-favour but internally strong
companies where he can help management build on a vision for recovery and growth. Investing with conviction, Crispin looks for corners
of the market where investment can generate compelling returns for investors. This focused approach has served Crispin well over the last
20 years, and today Odey Asset Management has an exceptional performance record across conventional and hedge fund portfolios.
Research at the core
The research team consists of nine senior analysts supported by five junior analysts whose primary responsibilities are to generate original
investment ideas. They work closely both with the macro team and the portfolio managers to find those investment ideas that are most
affected by the prevailing macroeconomic conditions. Their role is also to understand the consensus. With little regard for the sell-side, the
team must originate ideas using primary data. Therefore much time is spent with both company management and independent researchers.
Roughly the team meets >1,000 companies a year and spends c. £2M per annum on independent diverse research projects from high
street exit polls to forensic balance sheet analysis. The analysts are remunerated both on the performance of their recommendations and the
conviction with which they place their recommendations into portfolios.
award-winning performance
Over the years Odey Asset Management LLP has won a number of coveted awards for investment practice:
Hedge Fund Manager of the Year 2009 (Financial News) 2005 – European Fund of the Year
2008 – Best performing long/short strategy 2004 – European Fund of the Year
2008 – European Fund of the Year
LIPPER Top Performer, 2005 Lipper Fund Awards
1
Source: Odey Asset Management 18 March 2011
1 CAERUS Portfolio Management Ltd. Correct as at March 2011
2. THE WEEKLY INVESTMENT REVIEW
Odey Long Only Funds Track Record – all 1st quartile since inception
Long only performance (£ terms) as at 31st January 2011
Fund Since
Inception 1 Year Quartile 3 Year Quartile 5 Year Quartile Quartile
Inception
Europe
Odey Pan European Nov 02 17.52 2 35.48 1 66.84 1 210.42 1
Odey allegra European Nov 04 15.89 2 13.38 2 36.92 1 94.12 1
Odey continental European Apr 97 17.84 1 16.06 1 43.98 1 513.68 1
Global
cF Odey Opus Aug 01 17.57 1 27.47 1 50.86 1 220.26 1
Odey allegra International Mar 07 16.02 1 33.83 1 n/a n/a 44.20 1
Source: Odey Asset Management LLP (internal unaudited data).
All performance figures are net of fees, commissions and other charges. Past performance is not a reliable indicator of future performance and returns may increase or decrease as a
result of currency fluctuations.
Introducing the Odey Team
Peter Martin
Peter is MD of Odey Wealth Management (UK) Limited and Manager of Odey Portfolio Fund. Prior to working
with Odey, Peter was an MD of NM Rothschild, as well as Head of Investment Management and Manager of
the Rothschild Preferred Income Trust. Before his time at Rothschild, Peter was a Director at JP Morgan Fleming
Private Asset Management, and originally graduated from SOAS, University of London in 1983.
Freddie Lait
Freddie joined Odey Wealth Management (UK) Limited in 2010 to assist in managing the Odey Portfolio Fund
and segregated private client portfolios. Previously Freddie worked with Peter at Rothschild Private Management
as a portfolio manager, and prior to that he spent three years with Goldman Sachs Private Wealth Management.
Freddie graduated from St Edmund Hall, Oxford, with a Masters degree in mathematics.
crispin Odey
Founding partner and CIO of Odey Asset Management LLP, Crispin manages Odey European Inc (OEI),
one of Europe’s longest serving and well-known hedge funds, together with other long only products. Crispin
graduated from Christ Church, Oxford, and previously worked at Framlington Fund Management and Barings
Asset Management.
Tim Bond
Prior to joining Odey Asset Management LLP in 2010, Tim spent 12 years at Barclays Capital as MD and head
of global asset allocation. Tim was editor and principal author of the Barclays Equity Gilt Study and chief advisor
to BarCap’s RADAR fund. Previously Tim worked at Moore Capital as a portfolio strategist and spent 10 years as
a strategist and trader for Tokai Bank Europe, a proprietary trading boutique. Tim graduated in English Literature
from Oriel College, Oxford in 1985.
2 CAERUS Portfolio Management Ltd. Correct as at March 2011
3. THE WEEKLY INVESTMENT REVIEW
UK and European Equity
Introducing the Hc caERUS UK and European Equity Fund
This Fund aims to provide long term capital growth. Odey will invest capital to non-performing investments, and will often not have
in a diverse portfolio of UK and European equities and fixed interest any exposure to some market sectors.
securities, including government and corporate bonds. From time
This approach stems from Odey’s conviction investing, and
to time the Fund may also include some exposure to other equities
means that the Fund may not always adhere to its benchmark.
and fixed interests outside of Europe and the UK. The benchmark
The HC CAERUS UK and European Equity Fund can adopt high
for the HC CAERUS UK and European Equity Fund is 50% MSCI
cash positions and Odey can use collectives and bonds, as well
UK total return and 50% MSCI Europe ex UK total return.
as hedging techniques to reduce financial risk. The Fund can
The Fund will be high conviction, which means Odey will only also invest in regulated collective investment schemes, money
invest in companies in which the portfolio manager has the market instruments, warrants and cash deposits to add further
greatest conviction in their potential returns. Consequently the diversification. Financial instruments based on expected future
Fund will typically contain a smaller number of holdings than a prices, known as derivatives, can also be used with the aim of
more highly diversified portfolio, and depending on its size will providing returns and efficient portfolio management. However,
contain anything between 30 to 50 holdings. Unlike many other it is anticipated that derivatives will not have any adverse effect
Investment Managers, Odey is sensitive to the risks of committing on the Fund’s risk profile.
Odey’s current views on the Hc caERUS UK & European Equity Fund composition
n Overweight UK versus Europe
n Overweight Industrials, Luxury Goods, Technology, Oil and Gas, Insurance
n Neutral Banks, Mining
n Underweight Consumer, Utilities, Telecoms, Pharmaceuticals
Important Information
Past performance should not be seen as a guide to future performance. The value of this investment and the income from it can go down as well as up, it may be affected by
exchange rate variations, and you may not get back the amount invested.
No decision to invest in this Fund should be on the basis of this document alone. The information contained in this document may be subject to change and should not be
interpreted as investment advice. This document does not contain all information relating to the Fund and should be read in conjunction with the Simplified Prospectus which
will exclusively form the basis of any application. A comprehensive list of risk factors is detailed in the Simplified Prospectus and an investment should not be contemplated until
the risks are fully considered and understood. If you are unsure of the suitability of this investment please contact a Financial Adviser. Current tax levels and reliefs will depend on
your individual circumstances and details are also contained in the Simplified Prospectus. For your security we may record or randomly monitor all telephone calls.
CAERUS Portfolio Management is a trading name of CAERUS Portfolio Management Ltd. is authorised and regulated by the Financial Services Authority and is registered in
England, Registered Office, Lynton House, 7-12 Tavistock Square, London WC1H 9LT. Registered number 03056894. Issued 30th March 2011.
3 CAERUS Portfolio Management Ltd. Correct as at March 2011
