Lupus alpha is an independent German investment boutique (launched in 2000) that specializes in small- and mid-cap and alternative UCITS strategies. Prior to the annual Lupus alpha investors conference in Frankfurt I had the opportunity to speak with Mr. Ralf Lochmüller, founding partner and speaker of the board at Lupus alpha, about the company and how it has succeeded, as well as about the market for alternative UCITS in general. Mr. Lochmüller, Lupus alpha has become an established fund promoter in Germany since its launch in 2000. What has been the biggest obstacle you have had to overcome—from the company’s

The markets for equities and bonds faced increasing volatility during the first six months of 2016. In these tough market conditions a number of absolute return funds and alternative UCITS funds faced losses. The—in some cases—large drawdowns and resulting low performance numbers led to criticism by market observers, since the products claim to achieve only positive absolute returns. However, the majority of funds in the relevant Lipper peer groups define their performance targets over a long-term horizon, not over the short term. One of the established research papers analyzing this market is the study ‘Qualitätsanalyse Absolute Return-Fonds in Deutschland’ by