Archived note, published 16 January 2017. Fund statuses and figures reflect that date and may have changed since. See the current OpenList.
We found an interesting strategy to invest in the sovereign debt, rates and currencies with a large scope and a distinctive approach to main peers. The fund is a Macro UCITS strategy, highly liquid which invests across both EM and DM credit (G10), interest rates and FX. The strategy aims to deliver uncorrelated alpha but with a nimble toolkit and implementation. The PMs come from the long only space so they focus on simple, liquid, scalable investments without a trader mindset. However, they can move fast, with a high degree of responsiveness and flexibility: the decision making process is built to facilitate the quick implementation of investment ideas.
The team has a strong track record on sovereign long-only strategies and a solid skill-set across the Develop and Emerging Fixed Income markets with a high degree of specialization. The process is focused on 3 pillars: fundamentals, valuations and technical and the risk is assessed with volatility and VaR metrics.
The fund implements proprietary research of macro top-down views alongside bottom-up fundamental country analysis to identify directional and relative value opportunities.
The portfolio construction includes 5-10 thematic ideas that are distilled into 20-30 line items.
There is a strict focus on preserving returns and managing risk through a dynamic hedging strategy, extremely tight stop-losses, maximum monthly drawdowns and high liquidity.
The fund has a short track record and we have included it into our Watch List for further analysis and monitoring…