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Alternative Market Briefing

SYZ & Co launches levered OYSTER Market Neutral Plus

Wednesday, March 12, 2014

Komfie Manalo, Opalesque Asia:

Swiss private banking group SYZ & CO launched the OYSTER Market Neutral Plus, a new sub-fund of OYSTER, its Luxembourg UCITS SICAV. The fund will follow up on the success of the OYSTER Market Neutral fund that was launched in 2009.

The OYSTER Market Neutral Plus is an increased leverage version of its predecessor and will use the same neutral beta long/short strategy. It will be managed by SYZ Asset Management and utilize the same investment process and with the same diversification and non-correlation objectives as the original fund, OYSTER Market Neutral Plus offers 2x leverage and targets a return of LIBOR +10%, the firm said in a statement.

"With interest rates in Europe offering mediocre returns, the original fund is aimed mainly at conservative investors looking for a substitute for their bond investments. The double-leverage version will be attractive to investors wishing to invest in the equity market while limiting directional bias," explained Xavier Guillon, CEO of OYSTER Funds.

To generate double the performance as the original strategy, SYZ said the new fund would use twice as much leverage, which means that the portfolio’s exposure may vary from 100% to 400%. Volatility target limits will be 12%, instead of 6% for the original fund. M......................

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