HSBC's GEM AR portfolio shorts consumer stocks following solid first year

Negyal and Timberlake's stockpicking approach ensures year of solid positive performance.

Launching a low-volatility emerging markets vehicle last year as the region continued to soar seemed an oddly timed move from HSBC Global Asset Management. But with major corrections and outflows this year reminding of GEM risk, the fund passed its first anniversary in April sitting on solid positive performance. GEM Equity Absolute Return produced 7.1% net of fees over its debut year, against 0.3% from one-month Libor. Low net exposure Managers Omar Negyal and Nick Timberlake use a purely stockpicking approach on the fund, owning around 35 long and 35 short positions. They ch...