Best Multi-Strategy Hedge Fund: Winner

Hedge Fund of the Year: Shortlisted

The CQS Directional Opportunities Feeder Fund is a multi-strategy fund run as a concentrated portfolio but with a broad mandate which allows it to invest in multiple sub-strategies across all asset classes.

The portfolio manager, Michael Hintze is both CEO and senior investment officer of the group. He uses a combination of fundamental research and equity and credit research together with a quantitative analysis. He also takes advantage of CQS' broad product capability in convertibles, volatility, equity, resources, foreign exchange and credit.

The $731 million fund returned over 45% in 2009. Hintze attributes this to the experience of the portfolio management team, a focus on best ideas from across CQS and the quality of support from the operational and risk management platform.

For the future Hintze says CQS remains "mindful of the fact that the global economy and markets remain vulnerable. Whilst cautious, we remain constructive on the markets."

This he says is due to balance sheet reconstruction and the weight of funds. He adds: "In our view, it is possible to have a difficult real economy with high unemployment and a benign capital market; especially given that markets are forward looking."

Asset management group CQS operates around the globe, running a family of hedge funds, as well as having interests in credit and long only funds.

The group believes investment success is the result of four complementary aspects: detailed research, an experienced and proven investment team, a collaborative investment process and the support of a robust operational and risk management platform.

Its philosophy is to invest in strategies that offer the most attractive risk-adjusted returns, following a process based on a collaborative multi-disciplinary approach focused on fundamental research and quantitative analysis.

To support this process the group invests extensively in its risk management platform, operational infrastructure and margin and liability management framework

All these elements lie at the core of the CQS investment platforms and activities. CQS believes this to be essential in mitigating operational risk.

Founded by Hintze in 1999, CQS has been built around investment professionals, including research specialists in fundamental and quantitative analysis, and investment specialists in equities, credit, fixed income, volatility and derivatives.

The research and investment teams collaborate in the running of client portfolios from trading rooms in London, New York and Hong Kong.

The senior executives meet regularly as an executive committee and are supported by the CQS global advisory forum, consisting of professionals from a broad spectrum of backgrounds including  businessmen, academics and former regulators. The grouop also meets on a regular basis to review the company's business and strategy.

Fund facts: CQS Directional Opportunities Feeder Fund

Full name of fund: CQS Directional Opportunities Feeder Fund
Name of managment company: CQS (UK)
Contact: Michael Rummel, 33 Grosvenor Place, London SW1X 7HY (+44 (0)20 7201 6900; michael.rummel@cqsm.com)
Launch date: 2005
Strategy: multi-strategy,
Portfolio size: $731 million (at March 31, 2010)
Average annualised return: 24.45% (at March 31, 2010)
Average annualised volatility: 12.68% (at March 31, 2010)
Sharpe ratio: 7.06
Share classes: US dollar, sterling, euro
Administrator: Citco Fund Services
Auditor: Ernst & Young
Management fee: 2%
Performance fee: 20%
Minimum investment: $1 million
Redemption period: monthly, with 180 days' notice