Market leaders in the Hybrid sector, Elstree Investment Management, have launched a new fund aimed exclusively at retail investors. Elstree Hybrid Fund (Chi-X: EHF1) will be quoted on Chi-X from 31 March 2021, and is aimed at active investors looking to access the strong returns and risk outcomes that were previously only available to wholesale investors in Elstree.
The Elstree Hybrid Fund (EHF1) will use the same strategy as the successful unlisted wholesale Elstree Enhanced Income Fund, with the Chi-X quotation allowing investors to access a diversified portfolio of hybrids and a different management style, with liquidity enabled by market making.
Campbell Dawson, Director of Elstree said “With record low interest rates and global instability in the equity markets, investors are crying out for investment options that outperform cash but with less risk than equity markets. An actively managed hybrids portfolio has the potential to fit within that category.”
Mr Dawson adds “We believe the hybrid market offers opportunities for active investors as it is inherently inefficient. It is dominated by retail investors who have a limited understanding of bank and insurer capital issues, and who under and over react to issuer specific risks and equity market movements. We construct portfolios which seek to benefit from market opportunities and inefficiencies and pass these returns on to our investors.”