HI Principia Fund
Referent: Marc Chapman
Unternehmensüberblick / Kernkompetenz
Strategy: Equity L/S
HI Principia is a Long Short European Equity fund running with a low net exposure – on average 20% (beta adjusted). The fund is very fundamental in its approach and it deals with European companies of any size, in order to find low covered stories and structural inefficiencies. The strategy works on 3 main pillars: 1) Rigorous fundamental approach across Europe, 2) Capturing alpha through short term trading, 3) Assessing the sentiment in the market and acting contrarian. The investment team is deeply involved with the selected companies and it runs on average 450 meetings per year. Staying out of consensus and crowded names is of paramount importance. Usually there are 25 to 40 stocks in the book considering longs and shorts. Correlation between holdings is monitored continuously both on realized correlation and considering common/similar risk factors. In the European markets, where inefficiencies are significant and sector rotation’s dynamics sometime prevailing, this investment style offers efficient returns and high decorrelation. The fund adds the most value exploiting dispersion in equity returns.