Liberty Ermitage Group has today announced that the Liberty Ermitage European Absolute Fund, a fund-of-European hedge funds launched in November 1999, has achieved an average annual return of +12.3% since inception against an average annual index performance of -16.5% (source MSCI Europe). Total compounded returns for the Fund have been +38.90% against an index loss of over -40% for the same period.
“The Fund has consistently exceeded our performance objectives over the past three years,” says fund manager David Penhale. “We set out to build a portfolio of managers that would allow risk-conscious investors to share in the upside of European equity markets but, critically, to protect capital on the downside. The market conditions since launch have been extremely volatile and we have seen a very negative trend. In these adverse conditions the Fund has managed to stay in positive territory consistently.”
Investors in the Fund have not only achieved absolute returns as European markets have been capitulating, but they have done this with much lower risk: the Fund has an annual standard deviation of 6.3% against the MSCI Europe’s standard deviation of 18.5%.
“We are justifiably proud of this outstanding track record,” adds Ron Mitchell, Liberty Ermitage Group CEO. “Particularly given the treacherous conditions of the past three years. The markets have suffered considerable shocks, with the bursting of the tech bubble, 9/11, Enron, Worldcom, and other accounting fraud, as well as credit and profitability concerns. Our fund has therefore been subjected to the most incredible stress test and has come through with flying colours – 80% out-performance, considerably more positive months and all with a fraction of the risks of the underlying index. This not only reflects well on David, to whom considerable credit should be given, but also provides a solid testimony to the depth and rigour of our research and due diligence processes”.