Thu, Jun 4, 2020
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The Corona Fighters Report 30: Asset managers who delivered in the downturn

Friday, May 15, 2020

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.

Rebounds in equity hedge

After a harsh first quarter, equity hedge strategies rebounded in April. Swiss firm,Tramondo Investment Partners' Dynamic Equity Opportunities Fund was up 5.01% coming off a down month in March. The strategy is up 0.97% year to date. The fund is a diversified global equities portfolio with an equity market futures overlay that is used to hedge risk. The strategy has returned 21.43% since inception.

According to an investor update reviewed by Opalesque, the team at Tramondo used April to alter its hedges and take on new long positions. "We closed almost all hedges and gradually increased the exposure to 75% and kept it like this for most of the month while major indices started to build new bases after their bounce," the note said. "Hence, we have been able to already identify new leaders and slightly adjusted the portfolio accordingly. Regarding exposure management, if we would see major breaks of key supports, we would start decreasing exposure. Until then, we remain flexible and open-minded and try to take advantage of opportunities where they arise - day by day."

Trend followers take advantage of volatility

Austrian firm SMN Investment Services trend following strategy 1996 Fund is up 2.59% year to date. As the name suggests, the strategy launched in 1996, with the goal of maintaining low correlation to the broader market while providing diversification through managed futures. The strategy has returned +190.75% since its inception.

Managed futures funds posted a positive month in April overall, with returns of 0.12% according to the Barclay CTA Index.

Metals outperform

Canadian firm Delbrook Capital's flagship strategy the Delbrook Resource Opportunities Master Fund returned +19.7% in April, resulting in a year to date return of +9.8%. The strategy outperformed the Barclay Financial & Metals Traders Index, which was up 0.08% in April and is down 0.09% year to date.

The fund runs an equity long/short investment strategy focused exclusively on the metals and mining sector. The fund invests primarily in publicly listed companies that are focused on precious, base, energy, and industrial metals production and exploration. The strategy was launched in 2013.

According to a performance update to investors reviewed by Opalesque, April's returns were driven by a "tactical decision to increase long exposure to specific large-capitalization precious metals equities on the back of the unprecedented global monetization of government liabilities." The fund says the demand for hard assets has increased significantly in recent weeks and ETFs that provide exposure to these assets are seeing paper demand that outpaces physical metal capacity. That sets up the opportunity for profitable dislocations. The uncorrelated nature of metals trading also helped April performance.

The Previous issue of The Corona Fighters Report: Report 29.

Opalesque's Corona Fighters reports are open articles. To see all past articles, type Corona Fighters in our search engine:


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.



VIDEO REPLAY of CORONA FIGHTERS - Episode 1 webinar:

Watch the replay here:

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

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.

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing: Millennium hedge fund ups bet against Bank of Ireland, Value rotation was the last thing big funds thought would happen, Al Gore's firm sold Amazon and Microsoft stock. Here's what it bought.[more]

    Millennium hedge fund ups bet against Bank of Ireland From Independent: US hedge fund Millennium International Management has raised its bet against Bank of Ireland's shares. It comes as Davy says 2020 will be a write-off for banks, with losses across Irish lenders of €4bn. M

  2. PE/VC: Private equity in the Covid-19 crisis, Carlyle's Africa dealmakers leave to start their own buyout firm, UK asset managers plan shift to off-market strategies including private equity[more]

    Private equity in the Covid-19 crisis From Morning Star: Private equity investment trusts invest in unquoted companies not yet listed on the stock market. How have they fared in the sell-off? Investment trusts have been caught up in the market turmoil of recent months and private equit

  3. New Launches: Apeira Capital seeks $200m for hedge fund-like bets, PIMCO filing reveals ESG fund launch could be ahead, BEA Systems co-founder launches venture fund, Salesforce Ventures launches $125m Europe Trailblazer Fund, The D. E. Shaw group closes first onshore China investment fund, Legg Mason and ClearBridge launch non-transparent ETF, Hong Kong-based asset manager MaiCapital launches actively managed bitcoin hedge fund[more]

    Apeira Capital seeks $200m for hedge fund-like bets From Bloomberg: Natalie Hwang, the former head of Simon Property Group Inc.'s venture capital arm, has launched a new firm and is seeking $200 million for a debut fund. Hwang has been discussing the vehicle with prospective investors, ac

  4. New Launches: Hedge fund Angelo Gordon raising $1.5bn for distressed energy debt, Amundi unveils eight new funds as part of ESG ETF range push, Mezzanine Management gears up for direct lending fund[more]

    Hedge fund Angelo Gordon raising $1.5bn for distressed energy debt From Reuters: Hedge fund Angelo Gordon & Co aims to raise as much as $1.5 billion to buy the debt of distressed oil and gas companies, according to a person familiar with the matter and an investor presentation viewed by R

  5. Tech: Robos fail their first big test, 'Video is fine': Venture capitalists find the benefits in digital due diligence[more]

    Robos fail their first big test From Advisor Perspectives: Robo-advisors faced their first big challenge with the bear market in the first quarter of 2020. They lost, and that is an ominous sign for the future of automated advice. All robos employ a degree of active management. They