Hendry has run the Eclectica Absolute Macro strategy since 2002, when he launched it through his former role as partner of Odey Asset Management.
In 2005 he branched off and set up his own company, with a Ucits version of the fund arriving in 2009.
Since 2002 the offshore hedge fund has generated annualised returns of 8.4%, Keplar Partners’ research note said.
“Over this period the volatility of the offshore track record has been high, although since launching as a Ucits, volatility has been much lower. Given the more restrictive Ucits regulations we expect this to remain the case going forward,” analyst Georg Reutter said.
He explained Hendry’s core macro views ultimately drive performance and although he has successfully identified the largest macro dislocations in the past, his style of investing may not be to everyone’s tastes.
“Since launch the Ucits fund has only had one particularly strong period of performance (2011). On this basis we award the fund three stars.”
The offshore fund has been negatively correlated to equities over its track record (-0.3) and Keplar Partners said it expected the Ucits fund to capture 80% to 90% of the offshore returns with decreased volatility.
Since its launch in 2009 the Ucits product has produced annualised returns at 3.6% but more recent performance has been disappointing with the Nav having made no real progress since May 2012, the note continued.
“In our opinion, investors in this fund need a degree of patience (long investment time horizon) and although risk management rules should prevent drawdowns they are also likely to reduce future returns. In our opinion this has led to a confused identity for the Ucits fund and we will looked to see evidence of more consistent returns or strong tail protection before considering upgrading,” Reutter concluded.
