Key Points
Data as at 31 March 2009
Whilst the performance of the fund has been disappointing, we have no doubt that we are doing the right things – our longs have great financial characteristics and our shorts suffer from a lousy backdrop. Nevertheless, the mood of the markets changed during the quarter and investors engaged in a dash for trash. Clearly with a NAV down by over 5% we were not positioned for this. Our shorts in UK house builders and mining stocks together with longs in utilities were the positions that caused most of the pain.
As you should be aware, we have taken the decision to close down the European Hedge Fund. The fund is small in size and returns are highly correlated with those in the Global Hedge Fund.
We have decided that investors will be better off with the lower marginal costs associated with the larger Global Hedge Fund.
We believe that the returns from our market-neutral investment process will deliver good returns over the years. As a result, the managers of the European & Global Hedge Funds will personally be reinvesting the proceeds from selling their holdings in the European Hedge Fund back into the Global Hedge Fund.
Annual
Report and Accounts (as at 31/12/2007)
- Interim
Report and Accounts (as at 30/06/2008)
Key Facts
| Sedol Number | 3098284 |
|---|---|
| Type | Open-ended, Cayman incoporated, Dublin listed, European equity market neutral |
| Launch | October 2001 |
| Base Currency | €/US$/£ (depending on share class) |
| General Information | Monthly subscription (with 2 days notice) and redemption (with 10 days notice) |
| Share Class | A | B | C |
|---|---|---|---|
| Denominated in: | US$ | Euro € | £ |
| Liquidity: | Monthly | Monthly | Monthly |
| Listing: | Dublin | Dublin | Dublin |
| Minimum Investment: | US $100,000 | € equivalent of US $100,000 | £ equivalent of US $100,000 |
| Management Fee: | 1.5% p.a. | 1.5% p.a. | 1.5% p.a. |
| Incentive Fee: | 20% of absolute performance with high water mark and equalisation | 20% of absolute performance with high water mark and equalisation | 20% of absolute performance with high water mark and equalisation |
Data as at 31 March 2009
NAV |
% 3 Months |
% 1 Year |
|
| € | 107.5 |
-5.4 |
-31.3 |
| £ | 103.2 |
-5.1 |
-31.4 |
| $ | 95.9 |
-5.3 |
-30.9 |
Artemis European Hedge Fund NAV (EUR)
Source: Datastream
Performance
| € Nav | 107.5%, down 5.4% |
|---|---|
| £ Nav | 103.2, down 5.1% |
| US$ Nav | 95.9, down 5.3% |
| Funds Under Strategy | $6m |
| Net Exposure | -7% |
| Gross Long | 65% |
| Gross Short | -72% |
| Gross Exposure | 137% |
| Annualised Return | 1.1% |
| Sharpe Ratio | -0.2 |
| Sortino Ratio | -0.2 |
Source: Internal. Period for Fund performance: 1 July 2006 - 31 March 2009. Past performance is not a guide to future performance.
Historical Performance - Euro Class
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sept | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2002 | 3.0 | 1.3 | -0.8 | 2.8 | 2.6 | 4.1 | 3.1 | -0.8 | 4.6 | -3.4 | -1.7 | -0.9 | 14.4% |
| 2003 | -0.2 | 0.7 | 0.2 | -2.2 | 3.4 | -0.7 | -1.0 | -1.8 | 3.5 | 1.5 | -0.3 | 0.5 | 3.7% |
| 2004 | 0.2 | 1.1 | 1.8 | 0.3 | -1.4 | 1.1 | -0.6 | 1.4 | 1.2 | 0.7 | 2.5 | 0.0 | 8.4% |
| 2005 | 0.3 | 1.7 | -0.9 | 0.4 | 1.6 | 2.7 | 1.9 | 3.1 | 5.8 | -4.0 | 1.0 | 2.6 | 17.1% |
| 2006 | 3.8 | 0.0 | 3.2 | 2.4 | -4.0 | -2.2 | -1.5 | -1.9 | -0.7 | 3.3 | 0.9 | 3.6 | 6.8% |
| 2007 | 1.0 | 0.2 | 0.0 | 0.4 | 0.5 | 0.4 | 3.1 | -4.3 | 1.7 | 4.0 | -2.4 | -0.6 | 3.8% |
| 2008 | -4.3 | -3.8 | 3.2 | -3.9 | -0.4 | 10.3 | -3.5 | -13.8 | -12.3 | 0.6 | 0.2 | -6.6 | -30.6% |
| 2009 | 8.6 | -5.3 | -8.0 | -5.3% |
This document has been issued by Artemis Investment Management Ltd, which is authorised and regulated by the Financial Services Authority. It does not constitute an offer, invitation or solicitation to subscribe for shares which may only be subscribed pursuant to and on the terms of the offering memorandum published by Artemis European Hedge Fund Ltd (the 'Fund'). The Fund is an unregulated collective investment scheme the promotion of which in the UK is restricted by Section 238 of the Financial Services and Markets Act 2000. Accordingly, the Fund may only be sold to institutional and other investors who have experience of alternative, unregulated investments such as hedge funds. It is not generally considered suitable for private investors.
The value of investments, as well as the income from them, may fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. The Fund's anticipated use of borrowing, leverage and derivative instruments carries a higher risk of loss where relatively small price movements in these instruments may result in substantial loss to the Fund.
