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Alternative Market Briefing

Onslow's global macro fund up 6.35% YTD (45% last 12 months) through contrarian approach and long volatility

Friday, May 21, 2010

From the Opalesque team:

Launched in July 2007, the Onslow Macro Fund is a global-macro hedge fund with an emerging-markets edge and an emphasis on fixed income, managed by London-based boutique Onslow Capital Management Ltd. It invests across emerging and developed markets using asymmetric "option-like" trades in debt, equity and currency instruments.

Performance has been excellent in comparison not only to that of traditional bond and equity markets, but also to that of hedge funds, including its own global macro peers. Class A returned 3.26% net in April, 6.35% YTD, almost 37% in 2009, -7.17% in 2008 and has annualised 11.34% since inception.

The HFRI Macro index was up 1% in April, 0.85% YTD. It was up 4.34% in 2009 and up 4.83% in 2008. And the Credit Suisse/Tremont's Global Macro index posted its best 2010 returns in April (1.65%), as managers profited from strategic, theme-based trading and tactical opportunities provided by the month-end volatility. It is now up 4.27% YTD.

Global FoHFs house Olympia Capital issued a research piece recently, demonstrating that hedge fund performance could be determined by a risk regime-based approach. It said that strategies such as Global Macro and CTA usually outperform during high-risk periods as this is consistent with the fund managers' ability to take advantage of macroeconomic uncertainties, dispersions in market expectations and volatility (see Opalesque Exclusive ......................

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