A very successful deployment of a "constructive" approach to investment

The Winner’s Picks, Barron's
June 16, 2017

Alantra Asset Management's EQMC Europe Development Capital fund has averaged more than 20% a year, net of fees, since its inception in 2010. On an annualized three-year basis through the end of 2016, it gained more than 26% a year, putting it at the top of Barron’s Penta’s 2017 ranking of Top 100 Hedge Funds. The managers of the fund say most of their returns are driven by good stock-picking, but they also employ what they call “friendly active investing” to nudge core holdings to improve corporate governance, operations, capital allocation, and strategic decisions. Most company chiefs—typically first-time CEOs of public companies—welcome the managers’ guidance. When they don’t, Llanza and de Juan keep their position small, or move on: "We tend to be very constructive. Our strategy is to see how we can create value and help managers. We don’t see ourselves as a hedge fund. We don’t do leverage. We don’t short. This is a long-only strategy. We take a concentrated portfolio of 10 to 15 companies, and in some cases, we take 15% to 20% positions."

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