Mon, Jul 6, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Ferox Absolute Return reaches $100m

Tuesday, April 26, 2011
Opalesque Industry Update:Ferox Capital LLP announced that its Salar Convertible Absolute Return Fund (“SCARF”) will shortly exceed the $100mm in assets mark. The Fund has performed well since launch, with NAV currently standing at 103.92*, a 6.6% annualised return from launch in September 2010. The Fund has managed to successfully navigate the difficult months of November and March, delivering positive returns in each month since launch. It has therefore been producing that return with an extremely low level of volatility.

David Persaud and Alex Warren, the co-portfolio managers of SCARF (and both Partners at Ferox) are excited by the opportunity. Persaud stated, “SCARF targets a growing number of investor requirements: 8%-10% absolute return target, weekly liquidity, low vol – and unlikely to be correlated to much else in their portfolio. SCARF has the ability to hedge and uses robust techniques for protecting against losses. It is also UCITS, so very investor-friendly.”

Alex Warren explained how the product works to deliver absolute returns in difficult conditions, “It uses a combination of strategies: Firstly, we buy bond floor trades – outright convertibles close to the bond floor. This allows for upside participation and downside protection. Secondly, we look for synthetic put trades – 'in the money' convertibles equity hedged, offering the potential to make money in a falling market. Both strategies are asymmetric in that each trade risks less than the potential profit. Also there is considerable structural cheapness in both these subsets of the global convertible market. Coupled with diversification the combination of these two strategies is clearly compelling if your aim is steady capital appreciation."

Paul Sansome Head of Business Development and Investor Relations at Ferox Capital went on to say, “This product, which is on Morgan Stanley’s FundLogic UCITS platform seems to tick a lot of boxes for investors looking for liquid absolute returns. It has some tested techniques for protecting capital, it is a differentiated return stream that is relatively uncorrelated, and it benefits from regulatory oversight and the independent risk assessment of Morgan Stanley.

www.feroxcapital.com

Press Release
bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Grayson’s hedge funds under scrutiny for possible ethics violations, Court rejects hedge fund’s motion to block merger of Samsung affiliates[more]

    Grayson’s hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner