The two funds have performed extremely well. The long-only fund is number one on the Lipper survey of 142 similar funds since its inception. There are only two funds in that universe with positive returns for the period. The long/short fund has averaged 12.93 per cent a year since inception, after fees, with about half the volatility.

“For our long/short strategies, there has never been a better time,” Butler said. “The speed of the adjustment, as horrible and severe that it has been, gives the chance of it not lasting too long. Generally, if the adjustment happens rapidly you have a good chance of … getting back into balance more quickly.”

Martin Currie does not forecast the direction of commodity prices for its process. It tends to focus on change, either within sectors or at individual companies.

“We think the market systematically underestimates change,” Butler said. “So we look for material change at an early stage.”

The firm also believes that the market is inefficient in not fully appreciating all the information available. The market does not always apply the information consistently across the investment universe.

“There’s sometimes a disconnect between analysts’ assumptions, providing additional opportunities,” Butler said.

An example of the connectedness between market segments which Martin Currie observed to its benefit is steel prices and production in some industries.

“We shorted Korean shipyards early this year because the price of steel plate more than doubled,” Butler said. “People hadn’t recognised the margin squeeze for the shipyards.”

There was a two-three year construction delay because demand outstripped supply, but prices were struck at the time of order.  Construction costs rose and then orders started to look fragile, with some of the orders remaining unfinanced.
“That’s the most important way that we generate alpha,” Butler said. “We are only about 20-25 per cent net long.”