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…