News Column

BlueCrest AllBlue Fund Says 2013 Buoyed By Second-Half

April 28, 2014

Samuel Agini

LONDON (Alliance News) - BlueCrest AllBlue Fund Ltd Monday said net asset value per share of the sterling class rose by 2.5% in the second-half, bringing the return for the full-year 2013 to 1.8%.

In a statement, Chairman Richard Crowder said central bank policy once again drove the major movements in financial markets in 2013.

"During the year the major moves were driven primarily by the subsidence of worries over the future of the Eurozone, combined with escalating concern over the tapering of stimulus by the US Federal Reserve. The net result was that while developed market equities prospered, fixed income, emerging markets and commodities fell," Crowder said.

"For AllBlue, four of the six strategies rose in 2013 with falls confined to BlueCrest Capital International (fixed income relative value & macro) and BlueTrend (systematic trend following). Both of these two funds recorded their first ever negative year. The former suffered from difficulties in generating sustained returns as bonds yields rose. BlueTrend struggled with the swift reversals of fortune in markets but most particularly from the end of the 30 year bull market in bonds," Crowder added.

"In contrast, the other four funds generated impressive performance, particularly BlueMatrix (systematic equity market neutral) and BlueCrest Multi Strategy Credit. BlueCrest Emerging Markets generated strong performance despite challenging trading conditions and sharp falls in emerging market bonds and currencies," Crowder said.

"BlueCrest was, as a result, active in shifting the allocations within AllBlue. As a result of the notable decrease in the allocation to BlueCrest Capital International during the year, AllBlue held a very balanced allocation across the six strategies. This change, along with the meaningful increase in BlueMatrix, was significantly return accretive. Whilst returns in aggregate would have been higher but for BlueCrest Capital International and BlueTrend, the inherent diversification benefit of the six funds is valuable," Crowder said.

Crowder added that BlueCrest believes that its inherent approach and investment techniques remain effective despite below average returns recently.

BlueCrest AllBlue is a Guernsey investment company with an objective of investing substantially all of its assets in AllBlue Ltd, a multi-strategy fund of hedge funds investing in BlueCrest funds across its two core specialisations: discretionary and systematic trading.

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Source: Alliance News

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