FCA approves Kernow Equity Navigator fund

AuM more than £100m

The CG Kernow Equity Navigator fund – which just last Monday (21 February) received approval from the Financial Conduct Authority, is set to take advantage of the “widening gap” between closet trackers and “short-term quant-orientated traders”, according to CEO Ed Hugo and CIO Alyx Wood.

The long/short UK equity fund, which invests in opportunities across the cap spectrum, has a highly concentrated portfolio, with its largest long positions - Saga, Serica Energy, Frasers Group and Aviva - each accounting for 10% of the portfolio respectively. And, with an AUM of more than £100m, more than 20% of it £500m capacity constraint is already spoken for.  "It is important how you place yourself in the market," Wood said. "If you think of yourself as a UK equity strategy, you have 4,000 competitors. But a contrarian strategy is quite a rare thing, and a directional hedge fund tha...