Also benefit from falling courses (Photo: Freepik, Billionphotos)
The BSF European Opportunities Extension Fund (Isin: LU0418791066) is not an ordinary European fund. Instead of simply buying stocks and hoping for rising courses, he relies on a long-short strategy-a tactic that works in both directions. That means: rely on winners and specifically respond to short-rating companies.
The strategy behind the fund
The 130/30 strategy sounds technically, but is quickly explained: Up to 130 percent of the fund volume are invested in promising shares, while up to 30 percent go in short positions. The aim is not only to benefit from rising courses, but also to achieve returns in falling markets. At least 70 percent of the portfolio are invested in European shares, with the focus on medium -sized companies – often below the radar, but with great potential.
Particularly exciting: the fund uses derivatives to leverage its volume. This increases the chance of high profits, but also makes the investment more susceptible to fluctuations.
Where the fund invests
The portfolio is broadly diversified both geographically and sectorally. The most important markets are Great Britain, Switzerland, the Netherlands, Sweden and Denmark. In terms of content, industry, pharmaceuticals and finances dominate – classic European strengths.
The largest single position is Novo Nordisk (5.83 percent), Europe’s heavyweight in the pharmaceutical sector. Also there: Schneider Electric, the Danish logistician DSV and the pharmaceutical supplier Lonza. In total, the fund holds 134 different positions to spread risks and to be able to react flexibly to market movements.
The track record: impressive numbers
Since its laying on in 2007, the fund has achieved a strong performance: plus 1038 percent, almost three times as much as the European reference index (plus 390 percent). Originally led by fund manager David Tovey, the fund has been managed by Christopher Sykes and Stephanie Bothwell since 2021.
The latest figures show that the approach continues to work: plus 21 percent return in 2023, while in 2024 with plus 6 percent a solid, albeit a quieter year. The fund volume is 701 million euros – large enough for institutional investors, but not too sluggish for tactical adjustments.
Conclusion: for investors who want more
This fund is not for passive investors. If you only want to map the market, you are with one Standard ETF better served. But for investors who appreciate active strategies with a clear concept and flexible control, the BSF European Opportunities Extension Fund is an exciting choice. The combination of long and short bets can work both in rising and in falling markets- but requires a certain willingness to take risks.
Disclaimer:
No investment advice. No call to buy or sell securities.