Threadneedle launches European AR fund for Doyle

Threadneedle has launched a Luxembourg-domiciled European Absolute Alpha fund for pan-European equity manager Paul Doyle.

The UCITS III absolute return strategy uses the same process as Doyle’s other funds, the Threadneedle Apex European fund, and previously the European Crescendo fund, which closed this month.

Doyle will focus on high-conviction stock selection with a focus on valuation, combined with a top-down overlay determining sector exposure and monitoring risk.

The portfolio will primarily take long and short positions in European equities and will aim to generate the majority of performance from stock selection, the group said.

Doyle said: “Since we first launched the Threadneedle European Crescendo fund in 2000 and the European Apex fund in 2010, we have demonstrated that this particular high-conviction stockpicking strategy has been successful in navigating both bear and bull market cycles while limiting volatility of returns.

"We are now pleased to offer investors access to the same strategy in a regulated, liquid and transparent format.

“Despite the negative newsflow surrounding Europe recently, we believe it is an exciting time to look at European equities as we are able to find many companies at compelling valuations.

"The opportunity to deliver absolute returns through fundamental and valuation analysis with high conviction long and short positions is considerable.”

Campbell Fleming, head of distribution, added: “Our clients have indicated a great appetite for a product that will seize opportunities to capitalise on European equities while interest rates remain at historic lows and Eurozone uncertainty has depressed equity valuations.”