London-based hedge fund manager Trafalgar Capital Management has launched its first UCITS regulated vehicle.
The Trafalgar Quadrant Fund is run by investment director Chris Poil. The European long/short UCITS equity fund predominately invests in UK equities drawn from the FTSE 350 universe and focuses on recovery situations.
The fund splits companies into four quadrants or segments based on their value and growth characteristics, taking long positions in companies that are priced cheaply with the potential for growth and conversely short positions in expensive businesses that are likely to disappoint.
Poil explains: “Strong performance can be created by establishing where the unrecognised growth characteristics lie and identifying the torpedoes on the reverse side