Thu, May 26, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Cube Capital opens Cube Global Opportunities to external investors

Monday, July 02, 2012
Opalesque Industry Update - Cube Capital, the $1.3 billion global alternatives investment firm has opened its $100M Cube Global Opportunities (CGO) fund to outside investors for the first time since its launch in May 2009.

Cube Global Opportunities is an event driven fund with a mandate to invest long and short in equity, debt and derivative securities globally. The fund pursues an uncommon approach to event driven investing and takes advantage of the opportunities it perceives across select countries and sectors predominantly in Asia and Europe while investing opportunistically across the capital structure.

CGO’s event driven themes center around dislocated markets and disruptions within sectors and industries, in which changes in the perception of the key risks for the sector leads the traditional investor base to seek to exit the sector almost regardless of price. This can create very attractive entry points for new investors. In addition, on the short side, opportunities sometimes present themselves in sectors facing disruptive changes where investors have not factored in enough downside as a result of those changes.

Whereas there are many event driven funds that focus on announced corporate events such as takeovers and spinouts with defined exit points, Cube believes that there are very few that focus explicitly on disruptive events that create great entry points into trades.

Of course, finding dislocated sectors is only part of the challenge. Nick Linnane, Senior Portfolio Manager for the Fund elaborates “Having identified sectors that appear interesting, the portfolio management team has to do extensive fundamental work on the sector and the relevant companies and securities, as well as the potential catalysts that may cause a subsequent re-rating or the securities; carry also comes into play in the case of credit.” Sectors where the team has prior experience and/or those that are likely to provide opportunities for several years therewith justifying the research time tend to be preferred.

“We think this is a great time to open this fund to outside investors,” said Francois Buclez, Chief Executive Officer of Cube Capital. “We expect global economic instability to continue for the foreseeable future, and continue to be a fertile source of dislocation, so there will be many opportunities for this contrarian fund and its investors.”

The fund has not had a down year since inception and targets returns of 15%. The fund is event-driven and opportunistic, with forward-looking risk management aimed at protecting investors from excessive drawdowns.

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. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  4. West Virginia objects to Alpha Natural sale to hedge fund[more]

    From AP/Heraldcourier.com: West Virginia's environmental authority has filed an objection to the proposed $500 million sale of Alpha Natural Resources' assets to a hedge fund, arguing that the deal could leave the state holding hundreds of millions in reclamation liabilities. The Register-Hera

  5. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America