Skandia Investment Group is seeing growing investor interest in emerging-market stocks, prompting the company to consider creating a developing-nation version of its European Best Ideas Fund to meet that demand, said Lee Freeman-Shor, who manages the fund.
“There’s a lot of interest for some sort of Asia-Latin America-Emerging Markets ‘best ideas’ product and we are doing research into whether that is possible,” Freeman-Shor said in an interview in Santiago. “We have to see if there are enough good managers to make it work and if we would raise a lot of money into it to make it viable.”
The European Best Ideas Fund’s assets are managed on behalf of the Stockholm-based company by a team of hedge fund and long-only stock managers such as Crispin Odey of Odey Asset Management, Marc Renaud of Mandarine Gestion and John Chisholm of Acadian Asset Management. The fund recently surpassed 500 million euros in assets under management, Freeman-Shor said.
Each manager is allocated approximately 50 million euros from Skandia to invest in their top 10 stock picks, and may assign up to 25 percent of that money to a single pick, Freeman-Shor said.
The fund has returned 30 percent in the last year, beating 80 percent of its peers, according to data compiled by Bloomberg. In the same period, the MSCI Europe index has increased 16 percent.
The top three holdings of the fund as of May 31 were German pay-television provider Sky Deutschland AG, German semiconductor producer Infineon Technologies AG and UK-based chemicals and pharmaceuticals producer Yule Catto & Company PLC, according to a company brochure.