Key Points
Data as at 31 March 2009
Our winners were largely investments in the life assurer Legal & General, the legacy software supplier Micro Focus, the oil services company Petrofac, the medical devices supplier Smith & Nephew and a short position in a truck manufacturer.
Losers were largely banks: a Lloyds Banking Group fixed interest security, HSBC, as well as the financial betting operator IG Group and short positions in an engineer, retailer and telecoms operator.
We remain long those companies which we believe have a relatively stable earnings outlook and are short consumer-related plays.
We said at the end of 2008 that we expected 2009 to be turbulent and markets have certainly been volatile, even within trading sessions. This will not be over quickly but we think our investment theme of looking for good franchises, vigorous cashflows and little debt remains valid.
Annual
Report and Accounts (as at 31/12/08)
- Interim
Report and Accounts (as at 30/06/08)
Key Facts
| Bloomberg Code | ARTUKHG KY Equity |
|---|---|
| Type | Open-ended, Cayman incoporated, Dublin listed, European equity market neutral |
| Launch | December 2004 |
| 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 |
|
| £ | 130.3 |
-1.2 |
-1.7 |
| $ | 123.2 |
-2.5 |
-4.3 |
| € | 119.2 |
-1.9 |
-4.5 |
Artemis UK Hedge Fund NAV (£)
Source: Datastream
Performance
| £ Nav | 130.3, down 1.2% |
|---|---|
| US$ Nav | 123.2, down 2.5% |
| € Nav | 119.2, down 1.9% |
| Funds Under Strategy | $5m |
| Net Exposure | 29% |
| Gross Long | 46% |
| Gross Short | -18% |
| Gross Exposure | 64% |
| Annualised Return | 6.2% |
| Sharpe Ratio | 0.3% |
| Sortino Ratio | 0.3% |
Source: Internal. Period for Fund performance: 1 December 2004 - 31 March 2009. Past performance is not a guide to future performance.
Historical Performance - Sterling Class
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sept | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2004 | 0.8 | 0.8% | |||||||||||
| 2005 | 1.4 | -0.5 | 0.3 | -1.5 | 2.0 | 1.9 | 3.8 | 0.0 | 2.8 | -1.5 | 2.8 | 2.6 | 14.8% |
| 2006 | 2.0 | 1.0 | -1.8 | 1.1 | -1.4 | -0.3 | 1.4 | 1.5 | 0.2 | 2.4 | 1.2 | 2.3 | 9.9% |
| 2007 | 0.2 | -0.4 | 0.8 | -0.2 | 0.1 | 0.5 | 1.2 | -2.2 | 4.6 | 2.6 | -1.1 | 0.7 | 6.8% |
| 2008 | -3.8 | 1.7 | -0.3 | 5.2 | 0.6 | -0.2 | -0.1 | 1.2 | -3.4 | -5.0 | 0.0 | 1.5 | 0.3% |
| 2009 | 0.6 | -2.2 | 0.5 | -1.2% |
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 UK 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.
