Husselbee's MM range creates structured product to short gilts

John Husselbee's North Investment Partners has constructed its own structured note to effectively short government bonds across the manager's range of multi-manager funds.

Put together by a leading investment bank, Husselbee is targeting a 12% per annum return on the position, should 10-year gilt yields rise from the current level of about 4% to 6% over the next five years. With the 10-year gilt yield rising from about 3.7% since initiating the position late last year, Husselbee has already begun to profit from the product. Husselbee says about £3m of capital is usually needed to created a structured certificate, while he currently has £4m-£5m invested in the note across all his multi-manager funds. “While it is difficult to directly sell short gover...