Skip to content
atherton
  • 中文 (香港)
  • 中文 (中国)
  • English
Information

Neutron Asia Absolute Return Fund

Neutron Asia Absolute Return Fund is an absolute return fund focused on a strategy of long/short Asia ex Japan. We aim to generate positive returns in all market conditions.  It is a concentrated portfolio of stock picks employing a fundamental value approach seeking to take advantage of trading opportunities from both the long and the short side.

Overview

OUR FUND STRATEGY

  • Structural growth companies: We seek to identify sectors and companies that are in the process of rapid structural growth irrespective of the broader economy. This may include sectors driven by government policy. Examples of this are Internet, Travel and Healthcare.
  • Value with Catalyst: We seek to identify companies that are currently under-valued with a catalyst to crystalise that value. These are predominantly company specific.
  • Special Situations: There are companies that have a specific catalyst. Examples of this are spin offs, mergers and acquisitions.

OUR FOCUS

We target companies with clear intrinsic value, strong cash flows and growth potential.

One area we analyse is the ‘under the radar’ companies with a market cap under U$1 billion. These companies are often on lower multiples, little or no broker coverage and under owned by investors. They have huge potential to grow earnings, increase their multiple and be on the radar for institutional investors and investment bank coverage once the market cap exceeds U$1 billion. The less broker coverage the more opportunity.

OUR PROCESS

We screen the companies on a series of various valuation metrics.

We meet the management and visit the company.

We study competitors and customers.

OUR PORTFOLIO CONSTRUCTION

A company specific approach and stock selection.

The portfolio consists of concentrated, high conviction positions.

We hedge the portfolio using short positions in single stocks, ETFs and futures.

RISKS

All holdings are publically listed companies.

Single stocks are limited to 15% of the portfolio NAV at cost.

Liquidity is part of company specific risk and we monitor position size versus average daily volumes.

Risk is also mitigated via the investment process in companies with clear intrinsic value.

DRIVEN

The manager has a significant proportion of his assets invested in the fund and his interests are entirely aligned with investors. He will feel the loss and gains.

Information

Investment Launch Date 2 October 2013 Domicile Cayman Islands
Fund Size

HK$225 million

Approx. US$29 million

Auditor Ernst & Young Limited
Administrator

DBS Bank Ltd.,

Hong Kong Branch

Custodian

DBS Bank Ltd.,

Hong Kong Branch

Directors

Vincent Leung

Patrick Harrigan (Independent)

Sean Flynn (Independent)

Portfolio Manager

Jonathan Garrick

jonathan@athertonmgmt.com

Management Fee 1.5% p.a. Performance Fee 15% of profits above hurdle
Min. Subscription HK$1 million Dealing

DBS Bank Ltd.,

Monthly


Disclaimer: Possession of this document does not constitute an offer or solicitation to purchase shares of the Fund. The information in this document is for reference purposes only and shall not be construed as a solicitation to invest.  Professional investors should refer to the Private Placing Memorandum prior to investing in the Fund. The contents in this document have not been reviewed or approved by the Hong Kong Securities and Futures Commission (SFC).