The Kairos Group has set itself apart again in the 2019 sixteenth edition of the MondoAlternative Awards, thanks to the Kairos Equity Yield fund of the Kairos International Sicav.
The KEY fund (Class P) was recognised by MondoAlternative as “Best 36-month liquid alternative in the long/short equity sector-funds category” with performance of 2.74% compared to 1.97% for the reference index for the 2016-2018 three-year period and overall performance of 25.44% since its launch compared to 4.25% for the reference index.
KIS KEY is a long/short equity product investing in companies operating in regulated and semi-regulated sectors, primarily in infrastructure, the energy sector, transport and telecommunications at the global level, with particular focus on Europe.
“There are four main drivers behind these remarkable results,” explained Vittorio Villa, the fund manager. “First of all, the sectors in which we invest, primarily utilities and infrastructure, have offered positive returns over the last three years. Secondly, despite the fact that this is a long/short fund, we have maintained a long position during this period in order to benefit from this trend. The third factor, careful stock selection, has allowed us to choose the best stocks within each sector. And finally, perhaps the most important driver has been our concentration of positions in the portfolio. If we look at the performance of the long portfolio during the three-year period, 80% has been achieved with just ten stocks.”
In the current market context, the flexibility of a long/short product helps mitigate the risks represented by political uncertainty and interest rates. Low correlation with the economic cycle allows these strategies to achieve profits and dividends even in a slowing economy.
The MondoAlternative Awards, for 2018, are assigned to liquid alternative funds with an absolute return approach that, together with the best 36-month return, have a Sharpe ratio (calculated with a risk-free rate of 0.25%) no lower than 25% of the best Sharpe ratio in the category. For further details on awards won by the fund and relative methods, please visit www.mondoalternative.com.
N.B. Past returns are not an indication of future returns. The value of an investment decrease, including rapidly, in the same way as it can increase, and investors do not necessarily recoup the amount originally invested