Charlton to boost market exposure by 20%

The manager of the Dalton Strategic Partnership MST European fund is adding an extra 20% market exposure after noting a fall in volatility to pre-Lehman Brothers levels.

Leonard Charlton plans to increase the fund’s gross exposure to 150% this year, 20% above current levels. The fund is a Ucits III mirror of Dalton’s Melchior European hedge fund, which has had average gross exposure of 90% since launch in 2006. Dalton says MST European’s gross exposure will typically be between 55% and 130%. Charlton says: “The increase in gross exposure already was a function of opportunities we see, long and short, and volatility falling back to pre-Lehman Brothers levels over the past weeks.” Charlton says he will add to existing positions as well as establis...