TheAssirtgroup is continuing to push into the research of the burgeoning hedge fund sector, releasing its first ever rating of a single strategy hedge fund manager, K2 Asset Management, today.
Assirt gave each of K2’s Australian domiciled funds – the K2 Asian Absolute Return Fund and the K2 Australian Absolute Return Fund – a four star rating, and assessed the group’s overall capabilities in managing equities in a long / short style as ‘Strong’.
Assirt has previously rated a number of fund of hedge fund managers, including Colonial First State and Absolute Capital, but the rating of K2’s funds marks a new direction for the research house.
According to Assirt, the four star rating awarded to the K2 funds “reflects a favourable view of the manager’s expertise in managing hedge funds”.
Assirt says K2, which was founded in 1999, will face strong competition in Australia from other specialist long/short equity managers.
However the research house says K2 has a strong differentiating feature in its’ ability to invest in Asian equity markets, where it believes it can generate growth in the face of global uncertainty.
Assirt says the boutique funds management group also has a sound ownership structure.
“Integral to the ongoing development and success of a start up investment business are the unique strengths of each individual combined with a cohesive team and unity in decision making. These elements were evident throughout our meetings with the team,” Assirt investment research analyst Tania South says.
K2 chief operating officer Campbell Neal says the rating from Assirt was a positive development for the group and would help “move [the] business to the next level”.
K2 currently manages a total of $50.1 million.
