Tue, Jan 27, 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. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  2. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  3. Top performing private equity firms you should invest in[more]

    Komfie Manalo, Opalesque Asia: Professor Oliver Gottschalg of Paris-based HEC Business School, also known as Ecole des Hautes Etudes Commerciales de Paris has released his annual ranking of the top performing private equity firms. The 2014 HEC-DowJones Private Equity Performance Ranking

  4. Comment - Why invest in hedge funds if they don't outperform the market?[more]

    From Forbes.com: Hedge funds have always been a bit exotic and an enigma to some, but bottom line they are supposed to produce good returns using a range of strategies including global macro, event driven and relative value (arbitrage). And, sophisticated or high-net-worth individuals (HNWIs) could

  5. Owen Li 'truly sorry' for blowing up $100m of hedge fund’s assets[more]

    From CNBC.com: A hedge fund manager told clients he is "truly sorry" for losing virtually all their money. Owen Li, the founder of Canarsie Capital in New York, said Tuesday he had lost all but $200,000 of the firm's capital—down from the roughly $100 million it ran as of late March. "I take r