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Alternative Market Briefing

The Corona Fighters Report 28: Asset managers who delivered in the downturn

Wednesday, May 13, 2020

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Bailey McCann, Opalesque New York:

Amid the current market turmoil, this is our regular report on hedge fund and alternative asset managers who are bucking the trend.

A contrarian outperforms

Pennslyvania-based firm Valley Forge Capital's flagship fund returned 11.7% net in April and 6.2% net year to date. The fund is a long-biased equity hedge fund with a contrarian bent. The fund's holdings are mostly long common stock positions with opportunistic short positions.

Valley Forge Capital was founded in 2007 by Dev Kantesaria.

According to an investor update reviewed by Opalesque, Valley Forge sees opportunity over the near term. "It now appears that investors are willing to look past current headwinds and focus on earnings in 2021 and 2022. We believe the strong rally in stocks from their March lows is largely supported by an exceedingly low interest rate environment. When competing against a 10-year US Treasury rate of 0.6%, stocks look particularly cheap today regardless of the ultimate shape of the economic recovery," the update said. "Due to the low-interest rate environment, we believe today is one of the most attractive entry points into equities since Valley Forge's inception 13 years ago."

Currency volatility pays off

London-based Insch Kintore's Insch Kintore XAU/G7FX strategy is up 9.4% year to date. The strategy is a systematic trend-following algorithm that trades rolling spot gold versus major currencies. Buy and sell signals are generated from price breakouts, volatility and other proprietary signals. The strategy has generated 83.22% net since its inception in 2015.

The strategy is designed to participate when currency crosses with gold are profitable. According to a performance update reviewed by Opalesque, after a profitable first quarter, the fund had to pivot. "At the start of the month Kintore had precisely zero open positions and at the end of the month, Kintore was long two risk units out of a potential 14. By any standard, that is minimal participation."

Hedged dividends

California based Soteira Capital's flagship fund Huntress Dividend Strategy is up +0.89% for April and returned -0.56% YTD. The fund uses a proprietary system to execute a hedged dividend strategy on S&P 500 dividend paying equities. Long equity positions are paired with short, near or at-the-money call options and long out-of-the-money put options.

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Previous issue of The Corona Fighters Report: Report 27.

Opalesque's Corona Fighters reports are open articles. To see all past articles, type Corona Fighters in our search engine: www.opalesque.com/index.php.

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Disclaimer: This is not investment advice. Opalesque has not verified this information and gives no warranty of accuracy or completeness. Past performance is not indicative of future results. See our Terms & Conditions for more information.

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WEBINARS:

VIDEO REPLAY of CORONA FIGHTERS - Episode 1 webinar:

Watch the replay here: www.opalesque.com/webinar/#pw4

Meet five Managers and learn how and why their strategies delivered positive returns and/or protected capital during the Corona led market meltdown in one hour!

"A well-chosen topic of discussion and a great set of speakers to hear and learn from."
"I enjoyed the webinar and found the introduction to the strategies to be diverse and insightful.
"Very resourceful and insightful."

700 people registered for the CORONA FIGHTERS - Episode 1 webinar.


Don't miss EPISODE 2

Time: Tuesday, May 19th at 10 am EST
Register: www.opalesque.com/webinar/

You will be able to tune in to this webinar from any computer, tablet, or smartphone. The webinar will be recorded - in case you are not able to join, all registered participants will be provided a link to replay the webinar.

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