The odd alternative ideas
The prospect of seeking out the ‘least worst’ fund is an uncomfortable task for selectors. Silvia Tenconi, a portfolio manager for multimanagement investments at Eurizon Capital, is well aware of these issues and they have shaped her approach to the Alternative Ucits market over the past 12 months. ‘There is no particular area that can be singled out but many strategies are clearly not working,’ she says. ‘Too many of these funds are dependent on one type of call which, if wrong, can be problematic. If we talk about debt arbitrage, specifically, there has been a lot of focus on liquidity in these types of products recently. If they are not generating alpha, that raises even more questions.’ […] Tenconi is drawn to multi-strategy managers who have proved they can generate returns but are decorrelated enough from the wider market […]. We want to find managers who, yes, have performed well over the past three years but can explain to us how they have recovered given last year’s challenges. We also want to know what they will do differently this year to make up for the disappointment of last year.
“Salvaging winners from a broken-down sector” – Citywire, September 2019