InRIS Parus

Investment Objective

Parus Finance runs a flagship global equity long short strategy, which has been managed since 2003. The objective is to generate strong absolute returns through a cycle by taking a fundamental 3-5 year view on investments. The process is comprised of three areas of research: Good Growth, Value Mean Reversion and Balance Sheet Shorts. The fund takes bottom-up fundamentally driven positions in single name equities with the objective to make money on each position independently be it long or short. The conviction-based strategy ensures a concentrated portfolio of best ideas with low portfolio turnover. The overall portfolio has a variable net exposure through the cycle, and flexible mix of growth and value. 

Latest Meeting Note

Meeting 13 Mar 2023

Parus is a fundamental, global long/short equity hedge fund, founded in 2002 by two brothers, Fabrice & Edouard Vecchioli who continue to manage the strategy today, alongside two other senior partners, Marc Chatin and Philippe Carran...

Parus is a fundamental, global long/short equity hedge fund, founded in 2002 by two brothers, Fabrice & Edouard Vecchioli who continue to manage the strategy today, alongside two other senior partners, Marc Chatin and Philippe Carranace. The flagship strategy was launched in 2003 and has delivered an annualised net return of c. 12%, with strong returns generated on both sides of the book across it’s history. In 2013 the UCITS was launched and is run pari-passu to the flagship fund. The process is built upon 3 investment concepts. The first is “good growth”, focusing on growth and barriers to entry, with a mix of early stage, punchy growth and more established stocks which is closer to quality growth. Another area of stock ideas comes from balance sheet shorts, which is a more tactical shorting approach. And finally, the team use value mean reversion, which looks at assets really trading at a discount to their intrinsic value and the resulting reversion. The outcome is a portfolio that has a variable mix between growth and value. The above cohorts are implemented via a stock-picking methodology supported by fundamental analysis and the use of primary data such as company level data, market share, market prices, production, consumption, price or credit data. The team focuses on long-term outcome with the objective to make money on each position independently be it long or short. Although bottom-up stock selection is the primary focus, portfolio monitoring and risk control are also an integral part of the process. The UCITS fund has a variable net exposure which has historically ranged between -20% and 90% (avg 70%) and is influenced from microeconomic data points. The concentration is relatively high on the long side (typically 30-60 stocks) while trading frequency is low due to the long investment horizon.

Performance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
2023 0.7 0.8 0.5 0.1 0.6 0.5 0.6 1.0 0.6 0.1 0.5 0.9 0.2
2022 0.4 0.9 0.2 0.4 0.9 0.2 0.9 0.7 1.0 0.9 0.9 0.9 0.8

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