Amazing hedge fund’s 25% net fees and 16.5% return in turbulent Europe

Whilst European Union economies are still registering hideous negative returns on investments, but Lucerne Capital Management, one of Europe‘s youngest hedge funds, is doing quite well, thank you very much!

Run by two Dutchmen and based in Westchester, NY, USA, the company has been achieving high returns trading European equities. The owners, Pietar Taselar and Thjis Hovers are ex-ABN Amro. Having got seed capital from the bank, they set up Lucerne in 2002 which has been outstandingly successful since then.

Last year the company went up to more than 25% net in fees and made an average return of 16.5% net since inception. At slightly more than US$200M in assets under its management, its marketing has been sparse and its staff minuscule with more, or less the two owners being the firm’s ‘chief cooks and bottle washers’. But that is how they like it apparently as they say that this structure keeps then free to act quickly and decisively in their client’s interests away from the bother of corporate politics.

The firm has focused on mid-cap equities listed in Europe exploiting weaknesses in markets that have not been the traditional stomping ground of its competitors. As ‘long-shotters’ the owners have a penchant for intense analysis and an appetite for risk when their convictions are high. Taselaar’s view is that as they focus on potential deals that show an 20% annualized return and a non-too-risky profile, they have done well as for the past ten years as mid-sized European stock has abounded with such deals.

International Times of Dominica salutes Thjis and Pieters – keep up the good work!

[Finance & Economy Contributor]


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