Few funds in the European long/short equity space have managed to steer their investors through the very difficult market conditions this year better than Melchior European – the $1 billion five-year-old strategy run by a team at London-based Dalton Strategic Partnership led by former Goldman Sachs and GLG man Leonard Charlton.
The fund is up by 10% this year to the end of September, having made money in each of the past eight months of a torrid year, and has just completed a very impressive five-year track record through a period of exceptional volatility and challenge in European equity markets.
Since launch in October 2006, Melchior European has generated a total net return of 56.58% – against a drop of 28.56% in the MSCI pan-European index – and an annualised return of 9.5%, despite maintaining a low average gross exposure of 107%.
Annualised volatility since inception has been...