Sun, Mar 29, 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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner