Ben Wallace, portfolio manager of Gartmore Investment Management’s AlphaGen Octanis Fund, has shifted his portfolio from net short to net long in a move that underscores his confidence in equity markets. The fund achieved a 29% return in 2008 and is up 8.9% through the first half of 2009. According to an article from the Hedge Fund Journal, Mr. Wallace is attracted to the significant discounts in quality companies whose long-term demand picture looks strong.
The AlphaGen Octanis Funds has moved about a third of its investable assets in core holdings, or positions in companies they believe can be held for greater than 12 months. Historically, this has generated 50-80% of the fund’s return, says Mr. Wallace. The manager’s outlook for the second half of 2009 includes increased levels of volatility not unlike those we’ve experienced over the second quarter due to increased amounts of government spending. He is thus concentrating on companies whose growth is dependent on government spending.
Gartmore was spun-off from Nationwide Mutual Insurance in 2006 when a team of Gartmore's Senior Fund Managers and private equity firm Hellman & Friedman LLC purchased the firm. The firm offers numerous funds including emerging market, global, multi-manager, fixed income, and absolute return funds. |
