QUERCUS Opportunity

Absolute return product. In developed markets, this type of product is described as an opportunity fund. The subfund is designed to achieve double digit profits in absolute terms on an annual basis. The rate of return should not be highly correlated with stock exchange indices, including the WIG. The subfund may use derivative instruments linked to stock exchange indices in order to hedge some equity positions in its portfolio.

The risk level of investing in the subfund is relatively high.

This product is designed for Investors who would like to invest in equities, but are more willing to find opportunities (and limit the risk) instead of investing in wide market equities (high risk).

The subfund achieves its investment policy by making flexible placement of assets in equities (0 to 100% of assets), and debt instruments.

We actively seek market opportunities related to equities. Years of experience show that above-average rates of return are achievable when investing in shares of companies which:
•    are a potential target of mergers or acquisitions,
•    are family companies,
•    are executing their initial (IPO) and secondary (SPO) public offerings,
•    have suffered short-term drops in value after publication of bad news (distressed securities).

We will seek opportunities both on the WSE, New Europe stock markets and other international markets.

It is worth stressing that the subfund should be marked by better parameters which describe the relation of profit to risk than classic equity, balanced or stable growth funds.

This subfund does not have a benchmark.