Equity markets have seen a great deal of volatility so far this year, meaning that it has not always been enough to be simply long or short the market. Many of the most successful equity hedge funds have been those run by managers who specialise in high-conviction stock selection, rather than directional generalists.
Tim Steer and Stephen Yiu
So far this year, one of the star performers is Artemis UK Hedge, Tim Steer's long/short UK equity fund at Artemis Investment Management. The fund is up by just under 23% this year to the end of August, thanks very largely to one position - a highly successful short in beleaguered social-housing contractor Connaught, which suspended its shares and went into administration earlier this month after a precipitous collapse.
Established in 1997, Artemis focuses on active investment management and runs £10 billion across two hedge funds, a range of unit trusts...