Ernesto Prado is Chief Investment Officer and Partner at Ayaltis AG. Prior to founding Ayaltis, Ernesto was CIO of Peak Partner SA. The funds under his responsibility were rewarded with two InvestHedge Awards (2007) for best-risk adjusted returns in the fixed income category during the subprime crisis.
He has also worked at Fidelity Investments in Boston and Salomon Brothers in New York and London in their Fixed Income Derivatives Group. In 1998 he restructured Salomon's LTCM fixed income derivative portfolio in extremely volatile conditions.
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So far, this year, The Ayaltis Areca Value Discovery Fund (USD denominated) has had no negative month.
What would you say are the factors that have contributed to this positive performance?
Do you believe the current economic environment continues to offer credit arbitrage opportunities?
Geographically where do you see these opportunities and within specific asset classes where do you see them?
Given the loss in credibility and confidence that banks are facing plus the need for them to comply with increasing regulation (Basel III) which strategies do you believe have the potential to perform going forward?
Are investors willing to take on duration risk - or is there still resistance given the heightened market uncertainty?