Our managers have first started investing in 1994 on the fledgling CEE markets with primary focus on domestic fixed income and equities. In consideration of specific market dynamics and in particular the narrowing of Hungarian domestic opportunities the focus had been gradually shifting since 2008 to encompass a broader CEE regional exposure.
In equity portfolios HOLD runs a number of strategies, the most relevant to this mandate is perhaps the Concorde Equity Fund – representing an equity long only absolute return strategy, with a benchmark for the purposes of performance fee calculations. A factsheet for this fund is available separately. Please also note that apart from the actual Fund we also run similar mandates for a number of our institutional clients.
Another potentially interesting fund may be the Concorde Central European Equity Fund – a benchmarked CEE fund. A factsheet for this fund is available separately Our benchmark following portfolios in general performed at or over their benchmarks in 85% of the cases over the past ten years*.
In terms of geographic coverage for a CEE product HOLD Asset Management’s portfolio managers tend to focus on the Polish, Czech, Austrian, Slovenian, Croatian, Hungarian and Romanian markets, on the grounds that our team can provide the greatest value added in these geographies. This is due not only to geographic proximity but also the understanding of market dynamics and investor psyche on these markets, as well as the long term in depth and continued following of relevant investment opportunities on these markets. The portfolio managers have regular meetings with the management of relevant companies in the region whether they are currently in our portfolio or not. In terms of individual positions HOLD’s portfolio managers are typically looking for a minimum of 20% potential outperformance to invest in a company in the region.
*Source: HOLD Asset Management, further details available.