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Opalesque Exclusive: Danix Global Macro Fund benefits from higher volatility environment
The Danix Global Macro Fund reported April returns of +1.83%, +2.88%, and 6.05% for Classes A, C, and M respectively. YTD performance is +4.84%, +7.32% and +17.10%.
The Fund, which was launched in September 2005, invests predominantly in exchange traded futures and options on short term interest rates, government bonds, equity indices, foreign exchange, equities and commodities.
According to investor reports which Opalesque was able to secure the managers say, As part of our risk management process we test the portfolio for the effect of unforeseen extraordinary or 'shock' events, with the intention of minimizing our exposure to, and possibly benefiting from them. Since the 2005 launch of the Fund volatilities in interest rates and stock indices were historically very low, an environment which Danix identified as having extraordinary risk. This philosophy led the managers to question when a transition to higher volatility would return to the environment and during this time of low volatility they sought to protect the portfolio against such risk. In the transition from low to high volatility which occurred very quickly in August 2007 we enjoyed our strongest month to date as the value of embedded options to protect against this increased exponentially.
Looking forward, the managers are preparing for what they cite is a cycle of food price inflation e...................... To view our full article Click here
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