Absolute Return trust downgraded by Bestinvest

Bestinvest has downgraded the £177.5m Absolute Return trust because of a period of weak performance.

The rating of the multi-manager, multi-strategy fund of hedge funds, which is managed by Fauchier Partners, has been cut from three stars to one.

“Performance has been mediocre. There have been six down months in 2011 up to and including September, such that year to date performance is negative 4.6%,” Bestinvest says.

The independent financial adviser also notes that the trust should have a continuation vote at its AGM in September next year because of its discount control mechanism. This could offer shareholders a cash exit opportunity.

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