Opalesque Industry Update - As part of its strategy to become the premier asset management specialist in Asia, Hong Kong based financial services boutique Silverhorn Investment Advisors has launched three funds under its umbrella of the Silverhorn SICAV-SIF in Luxembourg. Each of the three funds offers separate investment strategies managed by in-house, specialist portfolio managers to enable investors to select the fund that best meets their investment objectives. |
The three new funds are the Asian Asset Allocation Fund, the Dynamic Relative Value Fund and the Asian Catalyst Fund.
Laven Legal Services, the specialist funds law firm in Luxembourg and London, advised Silverhorn on the structuring and launch of the funds.
The Asian Asset Allocation Fund captures the macro Asian growth dynamic by cherry-picking strategies across asset classes to generate returns in excess of US CPI plus 5% whilst reducing volatility through diversification and risk management. Using a top-down active asset allocation approach, the Fund’s manager efficiently allocates to best-in-class managers and passive indices to implement its asset allocation decisions. To contain its drawdowns, the Fund actively manages its downside risk through proprietary overlay strategies.
The Dynamic Relative Value Fund is non-directional and targets 8-12% per annum. By utilizing its established proprietary model to determine when markets are risk-on or risk-off, the Fund’s manager pinpoints the most opportune time to reduce and increase risk through its gross exposure. When markets are risk-on, the Fund employs a quantitative equity relative value strategy to extract pure alpha from pairs in the Asia Pacific region. When risk is off, the Fund re-allocates to 95% cash plus up to 5% of NAV in a targeted portfolio of long options premium to maximize left-tail return potential.
The Asian Catalyst Fund is a bottom-up long/short equity fund that uses quantitative tools and fundamental research to identify catalysts to establish long and short holdings. Long positions are in solid franchises trading at significant discounts to their intrinsic values, and short positions are in overvalued businesses with poor fundamentals. The Fund hedges its macro volatility risk through an overlay of futures and options and seeks to deliver sustainable risk-adjusted returns.
Mike Imam, CEO of Silverhorn says, “We are very happy to offer now our proven in-house investment skills, both on the asset allocation as well as specialist side in a well regulated and efficient fund format to our clients and new investors in Europe and Asia. This is a further important stepping stone in our ambition to offer investors prime and transparent access to a broad set of Asian investment opportunities.”
Jessica McCarroll, Co-CIO of Silverhorn and formerly managing director and co-founder of Lynx Arbitrage, a successful volatility arbitrage fund, says, “Each fund offers the investor a distinct strategy and risk profile thus allowing for end investors to allocate to the fund that best suits their risk tolerance”.
Jerome Lussan, Director of Laven Legal Services says: “We worked closely with Silverhorn and the CSSF to help launch the three funds. At a time when only quality managers raise new money for proven projects, Silverhorn seems to be the right manager with the right ideas. This was an exciting project and confirmed our credentials not only in Luxembourg but also in Hong Kong and Asia, where we are seeing more and more Asian managers launching European regulated products to attract Swiss and EU investors”.
Recent related article:
Jessica McCarroll, co-CIO of Silverhorn Advisors, participated in the Opalesque Hong Kong 2013 Roundtable, which you can access here, and she talked about the fund in an Opalesque TV interview which you can watch here.