Allow investors to participate in the secular Asian growth story predominately through equity investments, but with lower volatility and better downside protection compared to long only equity funds.
The Fund targets to capture most of the upside of Asian equity market returns during an uptrending market, while limiting drawdown to less than ½ of the market losses during a downward trending market.
The Fund has 2 complementary portfolios: an absolute return long biased, non benchmarked Asian portfolio (Mutual funds/ ETF/ Listed Equities) and an Alternative portfolio (Long/Short equity/Global Macro/ CTA/Volatility) to protect the downside risks.
Strategic Asset Construction: 75% long biased portfolio/ 25% alternative portfolio. Tactically, the Fund can deviate from above allocation especially in times of heigtened volatility and views cash as an important asset class.
The Fund has a long Asian currency bias, but can opportunistically hedge any unwanted direct currency exposures at the fund level. The aim is to protect capital and local currency gains.
Why invest in the Finles Lotus Fund
Experienced investment team based in the Netherlands with partners in London, Austria, Singapore, New York,Tokyo and Dubai, providing significant synergies. Being on the ground in Asia allows us to identify trends and themes early which can be expressed with conviction in the portfolio through country funds, thematic funds or by building a basket of equities. At the same time, it is important not to lose sight on the macro picture given the on-going issues in the West.
Unique hybrid structure; the alternative component of the portfolio (25%) invests in hedge fund strategies which have a global or Asian focus, and which theoritically improves the risk return profile of the overall fund by focusing on hedge fund strategies that are negatively correlated or exhibit low correlation with equity market indices. Finles Capital Management is a seasoned hedge fund investor.
The firm and the team members have a strong absolute return focus philosophy which differentiates us from benchmark focused funds. Capital preservation is a key driver, and the aim is to outperform traditional funds on a risk adjusted basis.