Wed, Nov 25, 2015
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


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 - BlackRock targets ETF investors with flexible currency hedging, Nelson Peltz bets on General Electric Company and Mondelez International, Apple plummets to 4th place among hedge holdings, from No. 1, Top Q3 equity purchases and sales of top 50 hedge funds[more]

    BlackRock targets ETF investors with flexible currency hedging From BlackRock Inc., the world’s largest asset manager, is changing course on exchange-traded funds that protect against currency volatility. After stressing the easy switch between hedged and unhedged ET

  2. Chicago-based Achievement A. M. is shutting down hedge fund following losses[more]

    Komfie Manalo, Opalesque Asia for New Managers: Achievement Asset Management, a Chicago-based hedge fund firm, has announced it is closing down its hedge fund operation following losses on energy market bets this ye

  3. Lyxor Hedge Fund Index up 0.1% (+0.4% YTD) as global macro and CTAs outperform[more]

    Komfie Manalo, Opalesque Asia for New Managers: Global macro and CTAs outperformed the hedge fund space and delivered positive returns last week amidst difficult market conditions, with the Lyxor Hedge Fund Index up

  4. BlackRock is shutting down its Global Ascent macro fund[more]

    Komfie Manalo, Opalesque Asia: BlackRock, the world’s largest asset manager, has announced plans to shut down a macro fund, Global Ascent Fund, because of "headwinds facing the industry". The hedge fund, which makes bets on stock, bond and currency markets, will return money to investors. Ac

  5. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the