Managed by Mark McKenna, this event driven fund is designed to exploit opportunities across a wide spectrum of corporate events, from announced M&A to management change. The fund is managed using a relatively conservative mindset, with a particular focus on hedging positions and isolating specific event risk. In our opinion, this makes the fund an interesting option for investors looking to benefit from corporate activity without exposing themselves to the high level of market risk often associated with event driven funds. Returns since inception have been promising, with strong risk adjusted returns and low equity correlation and beta.
A multi-strategy, convertible arbitrage fund seeking to generate returns of LIBOR +5-8% over the long-term. The fund is built from three core sub-strategies: Directional Bias, Hedge Overlay, and Portfolio Protection. The combination of these allows the fund to capture equity market upside while limiting exposure to equity drawdowns. Since launch, the fund has generated annualised returns of 4.8% with the track record displaying attractive equity market upside/downside asymmetry. At €42m in AUM the fund has clearly not scaled significantly however given the lack of credible options in UCITS we believe the fund is worthy of closer attention.
Our new monthly performance report highlights the best and worst performing ten funds in each strategy, both for the prior month and the year to date. Featured Funds this month include:
Merrion European Absolute Return
For the full report, please download below:
At its heart a catalyst driven strategy designed to profit from mispriced securities that are subject to corporate events including restructurings, M&A, and spinoffs.The UCITS driven sector is relatively well populated by funds, however there is a lack of credible, multi-strategy event driven funds with Boussard & Gavaudan’s offering one of the more interesting options available in the market. We particularly like the combination of traditional arbitrage techniques with derivative implementation, which through time should lead to a return stream that is uncorrelated to traditional asset classes while exhibiting moderate volatility and drawdown.
BlackRock Global Event Driven
Cheyne Convertibles Absolute Return
Monthly Fund Performance Report - September 2017
Boussard & Gavaudan Absolute Return
AH UCITS Index
|AH Global Index||0.03||0.6||2.7||2.7||-0.6|
|AH Credit Index||-0.10||0.2||1.3||1.9||2.6|
|AH Equity Long / Short Index||0.43||0.7||5.6||5.6||-1.8|
|AH Event Driven Index||0.06||0.1||1.8||2.0||-0.8|
|AH FX Index||-1.18||-0.5||-1.5||0.0||-0.3|
|AH Macro Index||0.45||0.3||1.8||3.0||0.0|
|AH Managed Futures Index||-1.86||2.3||-1.6||-4.4||-1.3|
|AH Market Neutral Index||-0.28||0.4||1.2||1.0||-3.6|
|AH Multi Asset Index||-0.05||1.2||3.8||2.0||2.7|