overview
The Nitrogen Fund is a low volatility long/short equity hedge fund, trading JSE listed stocks and managed on a fundamental basis with a value bias
specifications
The fund consists of a long term fundamental book and a short term trading book. The long term book takes advantage of risk arbitrage opportunities where the manager views stocks as mispriced on a fundamental basis. The short term book takes advantage of arbitrage opportunities available due to mispricing in the market, using a range of trading strategies. The fund’s investment universe includes JSE Limited listed stocks (including derivatives on these) and a small portion allocated to South African over the counter (OTC) unlisted stocks. The fund targets a low volatility with a maximum 42% net market exposure. The fund has delivered an annual compound return of 16.1% since inception in August 2006 compared to the ALSI’s return of 12.6% over the same time period with third the amount of volatility as the ALSI.