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necessary capabilities and target returns at below their WACC ( Weighted Average Cost of Capital ),” explains Papanichola .
“ Is it right that a company that doesn ' t really have the correct approach to renewables should invest so much money in this sector ? Or should that money be returned to shareholders and shareholders make the active / successful decision to put that money into renewables elsewhere ?”
A hybrid role Bluebell has a small but punchy refit . It trades equities only – dabbling in equity derivatives when the need arises – and roughly a third of its trades are public , Papanichola confirms . It outsources everything outside of its core functions including its HR , accounting , IT , compliance , custody and data management .
“ We outsource as much as we possibly can whilst retaining responsibility which leaves a very efficient and in no way compromised business which allows us to just focus on investing ,” says Papanichola .
The hedge fund favours what Papanichola pegs as an up-andcoming investment style . It champions one core concentrated fund of about 10-15 names . It then runs a sub fund taking the best strategies or a name that is doing particularly well – this could be one security or a hedge on a security – and offers it out to its current investors on a first come first serve basis . Positions in just one name can be sizable , says Papanichola .
“ It ’ s an investment style that has really taken off in the last 15 years . I see our style of investing probably having more of that in it over the next five to 10 years .”
42 // TheTRADE // Q1 2024