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At a glance
Index
S&P 500
Launch date
Oct 2007
Fund size
$402.4m
Fund currency
USD
OEICs
Fund Managers
Stephen Moore
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American Extended Alpha
The Fund aims to achieve capital growth through exposure primarily to North American equities. It is a UCITS III 130/30 fund, launched in October 2007, and has a target of outperforming the S&P 500 Index. We expect the majority of returns to come from stock selection. The Fund is a combination of a long-only portfolio and a short portfolio - the proceeds of the short portfolio are used to 'extend' the long positions. The Fund aims to keep broadly 100% net exposure to the market.
What does the Fund do?
The Fund is generally composed of around 150 to 200 positions across both the long and short portfolios. While the manager adheres to UCITS III restrictions as well as internal guidelines on sector exposure and position sizes, the Fund is less constrained than a long-only fund. The ability to adopt short positions allows the manager to take a more aggressive negative view on particular stocks than would be possible in a long-only fund, increasing the opportunity to create alpha or out-performance.
Thus, the American Extended Alpha Fund is targeted at investors who are seeking both exposure to the market and the potential to receive returns from the manager's ability to add value. Stock selection in this Fund is more important than in one that closely follows the benchmark. But investors should not choose the American Extended Alpha Fund simply because they potentially want to get a higher return than they could have obtained from a conventional long-only portfolio: the Fund can also offer greater flexibility than long-only counterparts, as well as seeking protection against downturns in the market.
Graph as at 12 noon: 31st March 2012
- Utilises UCITS III regulations to invest in both long and short positions to increase the potential for outperformance whilst also aiming to reduce overall portfolio risk and maintaining broadly 100% net market exposure.
- The Fund leverages the capabilities of Threadneedle's US investment team, which has experience of managing both hedge funds and long-only funds.
- The experience of our team and the scale of the US assets we have under management give us crucial advantages in terms of direct access to US firms.
- Launch date: October 2007.
- Min. Investment £2,000 / €2,500 / $3,000.
- Index: S&P 500.
- Stephen Moore
Stephen Moore began his career at First State Fund Managers in 1997, covering North American consumer cyclical companies before becoming an analyst then progressing to portfolio manager in 2001.
In 2002, Stephen joined the US team at Threadneedle. He went on to manage Allied Dunbar life and pension funds as well as co-managing the Threadneedle American Crescendo Fund.
He was actively involved in the development of the American Extended Alpha Fund, Threadneedle's first 130/30 product, and has managed the fund since its launch in 2007. In March 2008 he became lead manager on the American Crescendo Fund.
Stephen holds a BComm and a BA from the University of Queensland, Australia. In 2000 he received his Investment Management Certificate. Stephen is an associate of the Securities Institute of Australia.In 2000 he received his Investment Management Certificate. Stephen is an associate of the Securities Institute of Australia.