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Areca Investment Management announced the launch of Areca Value Discovery
Fund, a specialized fund of hedge funds dedicated to capture deep value investment
opportunities in the fixed income and credit area.
Fund description
The Areca Value Discovery fund will blend fundamental credit deep value strategies
together with fixed income trading strategies. The core part of about 70 – 80% of the
portfolio will be invested in low volatility and specialized hedge funds strategies with
asymmetric return profile, in particular into Distressed Corporate Credit, Distressed
Structured Credit, Capital Structure Arbitrage and Direct Lending. The satellite part, about
20 – 30% of the portfolio, aims to take advantage of the favorable trading environment in
interest rates, currencies and other asset classes by investing in Global Macro strategies.
Attractive uncorrelated returns will be achieved through the combination of high cash flow
income and capital appreciation. The fund’s target is an annualized return of 12% - 16%
p.a. with a volatility of 5% p.a. over a three to five years investment horizon.
Investment rationale
The credit crisis has created outstanding investment opportunities to achieve superior
returns while investing in the top of the capital structure, especially in Distressed Credit,
Leveraged Loans, Capital Structure Arbitrage, Direct Lending and Global Macro Fixed
Income strategies.
There are a number of key evolving market dyna...................... To view our full article Click here
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