James Mahon, co-manager of our Tenax Absolute Return Strategies Fund, guests on the FundCalibre podcast
A key theme of the discussion was the cautious positioning of the fund and James was able to share some valuable insight. "I think the most important point to understand about this fund is that it is cautious because the opportunities that we see in front of us are just not attractive and they'd been getting less attractive over the course of the year. And it's that that influences us, rather than Brexit or Mr Trump's trade wars or anything like that."
When questioned on scenarios in which the fund may take more risk, James explained that given the background on risk-free gilt returns, we were having to take a very patient approach and wait for some real opportunities to arrive. "What we hope we will see now is an increase in these risk free rates, some resolution of some of these uncertainties. Hopefully we're approaching peak uncertainty. We shall see."
As the interview closed out, Darius asked James if he could share any interesting investment types or strategies in used in the fund. James outlined his enthusiasm for convertibles and infrastructure, particularly in energy efficiency holdings, an allocation he has been building up over the last year.