What I Bought Last
Meet the managers Gries joined BlackRock in 2008 , has worked on the strategy since launch in 2009 and was named manager in 2013 . Bothwell became co-manager in January 2021 , having worked as a research analyst in the European equity team where she covered industrial and consumer sectors . Prior to joining the team in 2018 , Bothwell worked on the sell side for seven years . She is a qualified accountant .
In the field BlackRock European Absolute Alpha has frequently met its return objective over rolling periods , providing consistent gains and drawdown protection . The fund has a low correlation to equity markets , and a maximum drawdown of 6.8 % over three years compared with 24.6 % from the MSCI World index . We like the disciplined approach to portfolio construction and position sizing to manage drawdown risk , with an emphasis on the short book . Risk management is integrated into the strategy to help mitigate blind spots and ensure any risk taken is deliberate , diversified and scaled .
Although the team has provided protection during periods of stress , the long-term record has also been strong , with the fund up 16.1 % over three years and 25.2 % over five . Investors should note the managers use a measured approach , with capital preservation at the forefront of the strategy . Therefore , upside potential is likely to be limited and we do not expect the fund to keep up with the market in a strong bull run . But we believe the positives outweigh the negatives .
Emma Saunders is a research analyst on the collectives team at Rathbones
Issue 91 - January 2023 / 75 /