8.(10 points) The following questions relate to the UBS O'Connor Analytical Long short market neutral equity...

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8.(10 points) The following questions relate to the UBS O'Connor Analytical Long short market neutral equity fund. A) Why did this fund outperform the market neutral long short equity fund index? Why did the fund perform poorly relative to its own past performance? B) We are looking at both Swiss and U.K chocolate companies and both Swiss and U.K. pharmaceutical companies. We want to figure out which country we would go long and which country we would go short in the chocolate industry and separately in the pharmaceutical industry,and is it the same for those two industries. In the chocolate industry, we a have Swiss company called MEINTJES Chocolates (sorry can't use South Africa for this example) and a British Company called STOVER. In the pharmaceutical industry we have a Swiss company ARVIN and a U.K. company LUXOR. All of these companies export to the USA but to different degrees. MEINTJES (Swiss) derives 10% of its sales from the USA, while STOVER derives 30% of its sales in the USA. In the pharmaceutical industry ARVIN(Swiss) derives 30% of its sales from the USA while LUXOR (UK) derives 20% of its sales from the USA. Assume the market is underestimating the USA's economy in the future but will correct itself. Which countries do we go long and which countries to we go short for the chocolate industry and for the pharmaceutical industry? 8.(10 points) The following questions relate to the UBS O'Connor Analytical Long short market neutral equity fund. A) Why did this fund outperform the market neutral long short equity fund index? Why did the fund perform poorly relative to its own past performance? B) We are looking at both Swiss and U.K chocolate companies and both Swiss and U.K. pharmaceutical companies. We want to figure out which country we would go long and which country we would go short in the chocolate industry and separately in the pharmaceutical industry,and is it the same for those two industries. In the chocolate industry, we a have Swiss company called MEINTJES Chocolates (sorry can't use South Africa for this example) and a British Company called STOVER. In the pharmaceutical industry we have a Swiss company ARVIN and a U.K. company LUXOR. All of these companies export to the USA but to different degrees. MEINTJES (Swiss) derives 10% of its sales from the USA, while STOVER derives 30% of its sales in the USA. In the pharmaceutical industry ARVIN(Swiss) derives 30% of its sales from the USA while LUXOR (UK) derives 20% of its sales from the USA. Assume the market is underestimating the USA's economy in the future but will correct itself. Which countries do we go long and which countries to we go short for the chocolate industry and for the pharmaceutical industry?

Answer rating: 100% (QA)

A Outperformance compared to the market neutral longshort equity fund index The UBS OConnor Analytic... View the full answer