Hollywood star launches fund for UK investors
Superstar investor Steve Eisman, immortalised in The Big Short, is giving Brits access to a new fund.
1st March 2019 11:30
by Tom Bailey from interactive investor
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Superstar investor Steve Eisman, immortalised in The Big Short, is giving Brits access to a new fund.
US investment firm Neuberger Berman has announced the launch of a new fund available to UK investors and run by famed investor Steve Eisman, dramatised in the popular film The Big Short.
Based on the Michael Lewis's book by the same name, the film shows Eisman as one of the few investors on the right side of the market during the 2008 crash.
Along with a handful of other investors, Eisman identified the US housing market bubble and the risk posed by products such as certain mortgage-backed securities early. As a result, he and the other investors took a series of short positions, profiting handsomely.
Eisman's new fund, TM Neuberger Berman Absolute Alpha Fund, will attempt to make use of his reputation. It will take a global long/short equity strategy, which means it will take both long and short positions on global equities.
The fund's strategy is based on a pre-existing strategy managed by Eisman in a fund launched in November 2016. From inception to end December 2018, this delivered a net return of 11.4%, in US dollar terms, against just 1.3% for the HFRX Equity Hedge index.
A key feature of the new fund is that despite being an "absolute return" vehicle it will not, as is usually the case, be managed with an eye on reducing volatility.
Ben Yearsley, director of Shore Financial Planning, notes that in general absolute return funds have a poor track record. However, he continues: "It is that one big call he [Eisman] made that makes him stand out and means you should probably take notice, as very few others covered themselves in glory during the financial crisis. Eisman is one who saw the flaws and acted upon them."
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.