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Alternative Market Briefing

Emerging manager Strategis launches structured products linked to market neutral strategy

Monday, November 25, 2013

Beverly Chandler, Opalesque London for New Managers:

Investment manager Strategis Capital Management is introducing their Global Equity Market Neutral strategy next month and BNP Paribas is set to launch structured products linked to the strategy. The firm launched the Strategis VAULT Global Macro Fund in December 2012 with $14m in partner and shareholder capital. As one of the core strategies within the Strategis VAULT Macro Fund, the Global Equity Market Neutral strategy has returned 12.8% to the end of October, with a Sharpe of 2.8.

In an interview with Opalesque, co-CIOs C.J. Donley and Robert Toffel discussed how investment returns have varied over 2013.

Donley said: "When I look at asset returns in 2013, the year can be defined by three distinct phases of capital market activity. The largest and most impactful being the well telegraphed Bank of Japan weak Yen policy. In addition to a 15% depreciation in Dollar/Yen, the BOJ action put Japanese equities, particularly exporters, back on the map. As of today the Nikkei has returned 40% year to date. The second phase was defined by the significant return divergence between developed markets and emerging markets. For example, the S&P 500 has outperformed MSCI Emerging Markets by over 30% year so far this year. And lastly the final market stage phase of 2013, Taper Scare, which started in late Spring 2013 saw 10 year USD interest rates rise fr......................

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