XANTHUS GERMANY FUND LIMITED The Xanthus Germany Fund invests in mid-large cap equities of issuers in Germany, Switzerland, Austria and Lichtenstein.
The XGF is a "third generation" hedge fund product, differentiated from its peers and predecessors by its smaller size, sharply focussed investment objectives, a strong bias for liquidity, robust risk management protocols and clearly delineated and rigorously enforced investment restrictions.
OBJECTIVES The fund's objective is to achieve risk adjusted absolute returns of between 10-12% per annum with a volatility target of 5-8%. We aim to have low correlation to broader equity markets while maintaining liquidity at all times to maximise flexibility. Our overriding aim is to preserve our investors' capital.
LONG POSITIONS We take long positions in companies which are perceived to be well positioned within their sector and which offer absolute returns in both rising and falling markets. We place emphasis on identifying core long positions, comprising companies with identifiable catalysts that will help realise intrinsic value. Some of these catalysts may include surprise positive earnings results, scope for margin expansion, larger than expected dividend payouts, insider buy-ins, share buybacks or value enhancing investments.
SHORT POSITIONS We take short positions in companies that are principally poorly positioned within their sectors and offer a clear potential to depreciate. Our core short positions typically feature companies with liberal accounting practices, weak balance sheets, lack of transparency, poor pricing power relative to customers, poor earnings predictions, high capital intensity, low free cash flows and high "cash" burn rates. A core short position is one which might decline in absolute value even in an appreciating market.
TRACK RECORD In the 10 months to October 2008 the XGF's predecessor fund generated performance of 18.2%.
