Fund manager BlackRock has brought out a fund that uses an absolute return approach to invest in emerging UK companies.
The BlackRock Strategic Funds UK Emerging Companies Absolute Return Fund is a long-short equity strategy focusing on opportunities created by emerging companies. The strategy will cover companies that are in an early stage in their life, or expected to show significant growth. It also has an international focus – increasing its addressable market. The fund is an addition to BlackRock’s high conviction alpha range of active equity funds, which aim to offer an absolute return approach with a low correlation to market indices. The fund will be managed by Dan Whitestone, supported by portfolio manager Nick Little. Whitestone commented: “With over 1,600 companies in the UK and over 10,000 globally, there is a wide universe within developed equity markets from which we look to find emerging companies. We will focus on finding businesses with long runways of growth ahead and analysing industries where change is occurring globally. In doing so, we look to uncover investment opportunities created by the disrupters and combine them in a portfolio which seeks to deliver positive absolute returns irrespective of market conditions.”