News Column

BlackRock Hedge Selector Reports Net Asset Value Per Share Drop

August 28, 2014

Samuel Agini

LONDON (Alliance News) - BlackRock Hedge Selector Ltd Thursday said its UK Emerging Companies Share Class net asset value fell by 7.7% over the six months to end-June, including all ongoing expenses with ongoing charges of approximately 0.8% per year, reflecting the underlying performance of the UK Emerging Companies Hedge Fund, which fell by 7.3%.

The company's share price fell by 5.4% over the same period.

The FTSE 100 Index, meanwhile, rose by 1.9% over the period, the FTSE Small Cap Index increased by 1.5% and the FTSE All-Share Index by 1.6%. In contrast, the Numis Smaller Companies plus AIM (excluding investment companies) Index fell by 0.8% and the FTSE 250 Index remained flat, the company said.

All calculations were made on a sterling, total return basis.

"Against this backdrop, the hedge fund's performance was disappointing with the long portfolio contributing most significantly to the negative returns," Chairman Howard Myles said in a statement.

"The manager is confident that the investment strategy's bias for higher quality companies should deliver returns over the longer term, but a combination of exceptional market conditions over the period under review has meant that on balance, the quality companies in the portfolio fell, underperforming lower quality 'value' stocks," Myles said.

"This, combined with a sharp reversal in share price momentum, has impacted performance," Myles added.

The company provides investors with a choice of investment mandates represented by different share classes, each intended to provide a specific investment exposure to an underlying fund managed by BlackRock Investment Management (UK) Ltd and its affiliates.

The company currently has just only one class of feeder fund shares in issue, UK Emerging Companies Share Class, which provides investors with exposure to the performance of the BlackRock UK Emerging Companies Hedge Fund Ltd, a Cayman Islands domiciled fund managed by BlackRock.

The hedge fund aims to maximise total returns by investing primarily in mid and small cap UK equities, whilst limiting correlation with the UK equity market by maintaining a short portfolio.

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Source: Alliance News

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