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Melanion Capital launches first hedge fund focused on dividend futures

Monday, July 08, 2013
Opalesque Industry Update - Melanion Capital, Paris has received authorization from the French Autorité des Marchés Financiers to become the first alternative manager to specialize in investment in dividend futures.

Led by Jad Comair, founder and CIO, the Melanion team traces its track record and expertise in dividend futures (at a leading French investment bank) from 2008, the year of the first listing of a dividend future on Eurex. Since 2008, the dividend futures market has expanded in volume, in the number of traded instruments (single stocks, indices, options, etc), the number of exchanges issuing these contracts (Eurex, NYSE Euronext, MEFF, LSE, Tokyo, Singapore etc.) and the number of market participants (institutions, banks, family offices and others).

Other members of the Melanion team include : Portfolio Manager : Antoine Iskandar, Risk Manager: Dr Bing Zhou, and Business Development Manager : Erwan Tigreat.

Since inception in 2008, the trading strategy employed by Melanion Capital has generated an average gross return of 20%+ per annum, compared to a 2% average decline in the EuroStoxx50 during the same period as the impact of the global financial crisis took hold.

“This strong demonstration of alpha generation is a key validation of the Melanion Capital investment approach,” said Founder and Chief Investment Officer, Jad Comair who went on to explain that his firm will employ: “Quant and fundamental elements including bottom-up analysis, stock-picking, yield strategies and arbitrage to achieve its performance objectives.

“Because they’re simple, easy to understand and answers investors’ need to hedge their dividend exposure, dividend futures have become very popular since 2008 in an environment where other assets were losing momentum after the financial crisis. Melanion Capital’s unique business model aims at capturing the opportunities in these derivatives while seeing them become the asset class of the next decade,” Jad Comair added. “Our investment team was there at the beginning and established itself through the difficult days of 2008 and 2010. We firmly believe that Melanion Capital embodies a ‘first mover advantage’ in this sector and we look forward to being able to demonstrate our strengths and our ability to create alpha, on behalf of investors, in a wide range of market conditions.”

Press release

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