Alternative Market Briefing

Boutique hedge fund Aros Paradigm Fund up 14.54% in January

Tuesday, February 14, 2012

From Precy Dumlao, Opalesque Asia:

London-based boutique investment firm Aros Capital Partners has reported that its main hedge fund Aros Paradigm Fund returned 14.54% in January compared to its benchmark, HFRX Macro Index (EUR) which was down 1.28% during the same period. The strong results also brought the fund’s assets to $33.10m as at the end of last month. Aros Capital’s AuM is pegged at $410m.

Aros Paradigm’s double-digit gain last month was a complete turnaround after the fund closed 2011 down 22.10%.

January was the best month for Aros Paradigm since its inception in November 2009. Its second strongest month was in October 2011 when it gained 14.53% during that period. The fund’s biggest loss was recorded in August last year at 16.46%.

Except from outright hedges in volatility, all asset classes made money with the majority coming from corporate bonds and to a lesser extent, equities. The fund’s long-held view on extreme value in bank tier one debt finally came to fruition as a wave of tender offers from European banks started. This led to the significant re-pricing of the whole tier one space that the firm has been calling for since the end of last year. The upshot of this was a return contribution from fixed income of almost 10% in January.

Aros said in its monthly communication with investors, "In equities, we profited from bullish option strategies, successful long/short strategies and a small ......................

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