Cazenova’s European Equity Hedge Fund Shorting German Auto Stocks

Cazenova Capital Management is a UK  investment business with close to $20 billion under management. Its hedge fund, European Equity Absolute Return Fund has some interesting equity ideas in a recent letter.

The fund finished flat after May, a month in which Greek elections, along with a Spanish banking crisis precipitated a fall in a wide range of European assets. The fund's long value fell by 4.3% while shorts in the fund were up 4.4%.

The slight loss is due to exposure to oil companies, including SBM Offshore N.V. (AMS:SBMO) and Repsol SA  (PINK:REPYY). and from some smaller Swiss...