Varenne Global

Investment Objective

The Fund's objective is to target above average returns in a fund that mixes a concentrated long and short equity portfolio (long biased) with an overlay of merger arbitrage (long/short pairs or longs) and opportunistic tail risk hedging.

Latest Meeting Note

Meeting 26 Mar 2021

The Varenne Capital Global Fund's investment objective is to deliver superior long-term returns with the minimum necessary risk taking. The strategy is implemented via equity long/short, merger arbitrage and tail risk hedging trades. The... Read more

The Varenne Capital Global Fund's investment objective is to deliver superior long-term returns with the minimum necessary risk taking. The strategy is implemented via equity long/short, merger arbitrage and tail risk hedging trades. The longs are based on economically strong businesses trading at a 50%+ discount, while short opportunities are found in businesses likely to face a capital event within 18/24 months. The fund is typically long biased, but shorts are used as a source of alpha generation. Merger Arbitrage trades are very much special situations in nature, with the fund willing to enter the market when they view an adequate risk/reward payoff but are happy to stay on the side-lines when conditions aren’t right. There is a strict approach to using proprietary research only, with extensive use of screening and scoring systems, expert networks and personal expertise from careers as business consultants, with a ‘private equity’ style approach taken towards due diligence. Finally, tail risk hedging is implemented as an insurance policy to insulate the portfolio from major corrections.

Performance

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC YTD
2020 0.4 0.7 0.3 0.4 0.3 0.5 0.9 0.1 0.7 0.7 0.8 0.7 0.0
2019 0.1 0.8 0.7 1.0 0.3 0.5 0.7 1.0 0.9 0.9 0.5 0.0 0.2

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