Focused Fund

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Focused Fund

A mutual fund that invests in only a few stocks. That is, a focused fund may only hold positions in 10 to 30 stocks, as opposed to the several hundred that most mutual funds have. A focused fund intends to invest only in the stocks of the highest quality, and often engages in rigorous research prior to entering a position on a stock. Ideally, this will guarantee a solid return; however, critics contend that focused funds are deliberately undiversified, and are therefore exposed to a large amount of risk.
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When combined with the principles of fairness and transparency that are required in all Islamic investment activities, the sector has seen a recent surge in interest from ethical and ESG focused funds. This additional capital has only served to increase the funding deployed by Shariah compliant investment houses, such as Rosette Merchant Bank.
ISLAMIC REAL ESTATE INVESTMENT; ROSETTE Investment Director at Rosette Merchant Bank
Capitala Group is a provider of capital to lower and traditional middle market companies, through its family of credit focused funds. Since 1998, Capitala Group's managed funds have participated in over 143 transactions, representing over USD 1.4 billion of investments in a variety of industries throughout North America.
Capitala Group hires chief risk officer
Three Omani companies are planning to establish real estate investment trust (REIT) fund, following the market regulator's announcement of a new regulation for real estate focused funds.
Three Omani firms to set up REIT fund following new regulations
According to the Emerging Markets Private Equity Association, more than $4 billion has been raised for Sub Saharan Africa- focused funds, while a number of managers--Helios Investment Partners, Abraaj Capital and Development Partners International notable among them--closed funds near $1 billion.
Setting the stage for private equity
As asset management companies, or AMCs, launch funds that invest in just a few stocks, the recent being Motilal Oswal's MOST Focused Midcap 30 and Birla Sun Life's Focused Equity Ser 1, we look into the merits and demerits of investing in focused funds.
Bull's Eye
After a seven-month span of consistent positive flows ending November 2012, during which mortgage-backed securities focused funds took in an estimated $6.1 billion, the group has seen outflows in three of the last four months.
Hedge fund flows turn south in March
But, unlike several recent South-Africa-only focused funds, Calvert New Africa has a 50% to 60% South Africa weighting; its remaining investments are in 14 African stock markets open to foreign investors.
The nonstop from Durham
The number of IPO focused funds in MENA could be on the rise with more IPOs set to enter MENA markets in the next two years, which could bring in greater investment and IPO opportunities.
MENA IPO proceeds jump 129 per cent in Q2 2014, up 14 per cent in H1 2014
There are many lessons that have been learned from the dotcom collapse, including the fact that sector-specific or focused funds do very well if the sector was faring decently.
Should you buy sectoral funds?
Forty-three region focused funds were launched by financial institutions in the first half of 2009, compared to 39 in the first half of 2008.
More region-focused funds out in market
Capitala Group is a provider of capital to lower and traditional middle market companies, through its family of credit focused funds. Since 1998, Capitala Group's managed funds have participated in over 140 transactions, representing over USD 1.3 billion of investments in a variety of industries throughout North America.
Capitala Group leads USD 22.5m unitranche term loan
Assets in Greater China focused funds reached $12.9 billion, the highest level on record
Hedge funds raised $100 billion through asset flows in 2013
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