How going short extends UK alpha opportunities

Added 24th June 2015

Going short is one differentiating factor behind Chris Kinder’s extended alpha equity strategy fund and a skill not practised by many competitors in the UK All Companies sector.

Being able to sell something you do not own for your own gain is a peculiar yet very accepted part of our industry and something that, in the case of at least one UK equity fund manager, is a huge differentiator.

Rather than buying more of what he likes when positive opportunities arise, Columbia Threadneedle's portfolio manager Chris Kinder benefits from shorting stocks he does not like whenever he sees the right opportunity to do so.

Here, he explains how the analysis of companies, their fundamentals and valuations combine for him to identify where valuations “do not stack up with what is going on on the ground”.

He also gives some flavour to why he has recently increased his short book - that has averaged around 16% short since he took on the fund at the end of 2010 - and where the challenges and therefore opportunities are ahead.

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About Author

Gary Corcoran

Director

Portfolio Adviser & International Adviser

Gary Corcoran is the editorial director for Portfolio Adviser, International Adviser and Fund Selector Asia. He is also programme director and chairman for events hosted across the UK, South Africa, Middle East and Asia. Gary joined Last Word Media in August 2006 as the launch editor of Portfolio Adviser, having previously worked at Bacon & Woodrow, Legal & General, FT Business and MSM International.

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