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Opalesque Exclusive: New Argentinean boutique gained +0.81% from relative value trades in January where MSCI Latam lost -6.62% Convex Management is a new Argentinean boutique, based in Buenos Aires; it was launched in May 2007 by two finance professionals who are also finance professors, Andres Azicri and Marcelo Elbaum. Then came the Convex Fund, a Latin America-focused hedge fund which currently manages around $34m. The fund is the firm’s flagship and sole product and it is targeted to international institutional investors. It was awarded the “Best Newcomer 2007 Hedge Fund” price by Terrapinn. Convex aims to become the leading independent LATAM dedicated hedge fund manager in the region, the website said.

The Convex fund engages in active management through directional and relative value trades in emerging markets with a special focus in LatAm. It uses a multi-strategy approach. Class A has returned 2.20% since inception (June 2007) and 0.81% net in January whereas the MSCI Latam returned -6.62% and the EMBI Plus -1.63%.

In January, the managers focused basically in relative value trades with good convexity, i.e., trades that had good quantitative response to both bearish and bullish scenarios. On the long-short equity strategy, Convex remained beta neutral but short dollars and that way the fund benefited from the increase in correlations products of the sell-off in most stock markets across the region. Looking forward, the managers continue to e......................

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