The Luxembourg-domiciled Threadneedle European Absolute Alpha Fund is Ucits compliant and will utilise the same strategy as two other funds managed by Doyle – the Threadneedle Apex Fund, which was closed earlier this month and the Threadneedle European Crescendo Fund, which was closed in September 2010 after 10 years.
Threadneedle said high-conviction stock selection had been the dominant driver of returns for these funds, with a strong focus on company analysis and valuation, and that it is intended that this will be the main driver of returns for the new vehicle.
The stock selection strategy will be combined with a top-down overlay, in order to manage sector exposures, while Threadneedle said the manager will also retain a focus on monitoring risk.
Doyle said: “Since we first launched the Threadneedle European Crescendo fund in 2000 and the European Apex fund in 2010, we have demonstrated that this particular high-conviction stock picking strategy has been successful in navigating both bear and bull market cycles whilst limiting volatility of returns. We are now pleased to offer investors access to the same strategy in a regulated, liquid and transparent format though the Threadneedle European Absolute Alpha Fund.
“Despite the negative news flow surrounding Europe recently, we believe that it is an exciting time to look at European equities as we are able to find many companies at compelling valuations. The opportunity to deliver absolute returns through fundamental and valuation analysis with high conviction long and short positions is considerable.”
