Franklin K2 Bardin Hill Arbitrage UCITS Fund

Investment Objective

Bardin Hill invests in catalyst event-driven opportunities focusing primarily on merger arbitrage. The manager also invests in special situations related to corporate events such as spin offs, asset sales, and significant buybacks. The Fund’s investment objective is to achieve attractive risk-adjusted returns over time with relatively low drawdowns compared to and low correlations with the broader equity markets.

Latest Meeting Note

Meeting 23 Apr 2020

Bardin Hill is a global investment firm that specializes in credit and merger arb investing. Founded in 1981 the firm currently manages about $9.3 billion across three core strategies: Opportunistic Credit ($2.2bn), Performing Credit ($6... Read more

Bardin Hill is a global investment firm that specializes in credit and merger arb investing. Founded in 1981 the firm currently manages about $9.3 billion across three core strategies: Opportunistic Credit ($2.2bn), Performing Credit ($6.4bn) and Merger Arbitrage ($600m). The merger arb UCITS fund launched in September 2019. It primarily invests in announced (friendly) transactions, but may also include other event driven strategies such as value/technically driven arb investing, structural optionality, etc. across the capital structure. The portfolio is run opportunistically and includes 25-35 positions at any given time that are sized versus a maximum ‘break risk’ of 2.5% NAV. The portfolio is US centric. The overall exposure of the portfolio is actively managed based on the environment and the dynamic re-assessment of downside risk at the position level, with the ability to go long and short spreads depending on the team’s fundamental view. There is a bias towards deals that have a strong strategic rationale has they typically find footing even in the most stressed market conditions and eventually close. The strategy has performed well in March 2020 relative to peers (despite not running a portfolio hedging overlays) benefiting from a cautious positioning (the manager cut risks in February) and the ability to trade around positions during the market dislocation.

Performance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
2019 0.8 0.7 0.7 0.7 0.8 0.3 1.0 0.5 0.6 0.1 0.9 0.5 0.7
2018 0.9 0.3 0.3 0.8 0.2 0.6 0.6 0.9 0.4 0.5 0.1 0.8 0.3

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Close Current Site Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.