Skandia has added the CF Octopus Partner fund to its Skandia Investment Solutions and Royal Skandia online platforms.

The Absolute Return fund, launched in March 2008, returned 42 per cent over the 12 months to the end of December, making it the top performer over a one-year period, according to Morningstar.

Graham Bentley, head of investment marketing at Skandia said demand is key to adding funds to the platform and the track record of the fund has helped drive exactly that from investors.

He added, ‘Octopus is a new group for Skandia and I’m sure the addition of this first fund will be the beginning of a strong partnership from now on.’

David Crawford, manager of the fund, said that he looks to invest in companies or shares that, after analysis, he considers to be mispriced by the market and for which there is a likely catalyst to correct the mispricing.

He explained, ‘This past year has seen extraordinarily volatile market conditions which have enabled me to provide exceptional returns. The fund aims to return ten to 15 per cent per annum that should be achievable in more normal market conditions.’

The fund is a long short fund and can take advantage of the opportunity to invest in derivatives providing both long and synthetic short positions.