Thu, Aug 5, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The Corona Fighters Report 39: Asset managers who delivered in the downturn

Wednesday, June 03, 2020

amb
B. G., Opalesque Geneva:


This is our regular report on hedge funds and alternative asset managers who are bucking the trend by successfully protecting assets or outperforming the markets in the first months of 2020.


A leading AI strategy

The Volatility Special Opportunities Program (VSOP) is up +21.5% as at April 30, 2020.

VSOP uses a systematic multi-strategy approach in the S&P 500 index volatility market with a real-money track record dating back to July 2016. Its total performance since then is +78% - compared to +32% for the S&P500.

The program consists of several proprietary algorithmic and fully automated sub-strategies, according to a document reviewed by Opalesque. Returns among the sub-strategies are low-correlated, internally diversifying the program. VSOP provides an effective intraday and short-term tail hedge, through situative long VIX exposure, while generating positive returns via its long equity bias during bullish market phases.

The manager is Quantumrock GmbH (formerly known as Rise Wealth Technologies GmbH), an AI investment technology company founded in 2012 and based in Munich, Germany. The firm has been, since the beginning, focusing on a systematic, algorithmic driven investment process underpinned by proprietary technology and quantitative approaches such as machine learning. Its philosophy is that markets are not always efficient; anomalies, deviations, irregularities happen all the time. Prices move frequently in patterns, but barely distinguishable from market noise - generally only identifiable by technology through quantitative analysis.

CEO Stefan Tittel will present the fund in The Corona Fighters webinar's Episode 3, on June 23rd at 10 am EST.


Short term corporate and personal lending in Brazil

SCF Brazil, Cayman Feeder SPC is up almost +5% YTD after returning +1.22% in March and +1.22% in April.

SCF specializes in short term corporate and personal lending in Brazil. All loans are secured by guarantees and/or credit insurance. The historical annualised net USD return of SCF is 19% with a Sharpe ratio of 15.95. The extremely high risk-adjusted returns are explained by the truly oligopolistic Brazilian banking market where smaller, nimbler lenders like SCF can lend at highly attractive Brazilian real rates. All known cash-flows are, furthermore, hedged back into the base currency of the fund. The Brazilian legal system allows SCF to legally demand both personal and hard asset guarantees for all loans to ensure timely payments.

SCF Brazil was established in early 2016 focusing on the generation of high-quality receivables where the payors are well-established Brazilian companies. After a legislation change in 2018 and intensive systems-development, SCF recently added loans to individuals as well as government receivables to the portfolio. Presently 15 professionals are employed in São Paulo.

The disarray at the heart of the administration in Brasilia is total and the President is overtly courting a new military dictatorship, says a manager commentary in the fund's latest monthly report.

"The gigantic money-printing market-rigging operation in force in the whole OECD-area did, however, not only create a historical 13.1 % surge in world stocks in April. It also helped the Bovespa to rise by 10.3 % during the month. Therefore, the financial market adjustment to the massive Brazilian instability was expressed in the BRL which continued its inexorable slide against the USD by another 5.6 %. Since 31 Dec. 2019, the BRLUSD has now depreciated by an astonishing 36.6 %.

"Given the environment, SCF is happy to report that we maintain to be well-hedged FX-wise. Furthermore, we are utilising the lack of competition from other lenders not only to steadily raise rates but also to shorten the average duration of the loans."


***

Last issue of The Corona Fighters Report: Report 38.

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


***

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.

***


WEBINARS:

Meet 10 fund managers and learn how and why their strategies delivered positive returns and/or protected capital during the Corona led market meltdown! Each webinar lasts an hour and features five managers.

"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."


VIDEO REPLAY of CORONA FIGHTERS - Episode 1 webinar: www.opalesque.com/webinar/#pw4

VIDEO REPLAY of CORONA FIGHTERS - Episode 2 webinar: www.opalesque.com/webinar/#pw5


Video replays of Opalesque's past webinars can be found here: www.opalesque.com/webinar/#pastwebinar


Don't miss our new webinars!


- How quants achieve material improvements in ESG investment performance

Time: Thursday, June 18th, 10 am EST
Details and registration: www.opalesque.com/webinar/ESG/


- Corona Fighters Episode 3

Meet five more asset managers who delivered during the meltdown.

Time: Tuesday, June 23rd, 10 am EST
Details and registration: www.opalesque.com/webinar/



Opalesque's upcoming webinars: www.opalesque.com/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. New Launches: Apollo investors look past Black-Epstein tie to back impact fund, Leeds Equity closes in on $1.25bn for its seventh buyout fund, Schroders Capital surpasses $389m for its fifth European infrastructure senior debt fund, Neuberger Berman closes NB Private Equity Impact Fund at nearly $280m, HSBC AM launches fintech venture capital strategy, Slate rounds up close to $600m for first credit fund, Trifecta Capital raises $130m for close of VC fund, Lumira Ventures closes on $255m of new capital to build transformative healthcare companies[more]

    Apollo investors look past Black-Epstein tie to back impact fund From Bloomberg: The backlash against Apollo Global Management Inc. over Leon Black's ties with sex offender Jeffrey Epstein is waning, with investors lining up to entrust the firm to manage investments dedicated to social

  2. Investing: Tiger Global: The technology investor ruffling Silicon Valley feathers, Addepar raised $150m from hedge fund D1[more]

    Tiger Global: The technology investor ruffling Silicon Valley feathers From FT: For the first 15 years of running Tiger Global Management, Chase Coleman wore a suit every day in the hopes that investors would look past his inexperience. Today, his firm faces a different kind of reputat

  3. SPACs: SPAC IPOs show time is money with speedier deal chases, Pershing Square Tontine has almost no risk left after its merger imploded, Lending platform Kredivo to go public via $2.5bn SPAC merger, SPAC-on-SPAC deal falls apart, and so does Immunovant's stock, Grab loss narrows on food delivery ahead of U.S. SPAC merger[more]

    SPAC IPOs show time is money with speedier deal chases From Bloomberg: SPAC bosses are finding they have to speed up their deal hunt if they want to attract investors these days. About half the blank-check companies that filed for U.S. listings since the start of June are giving th

  4. Goldman's China hedge fund clients had second-worst month ever, Tiger Global almost breaks even in July despite China stock rout, Hedge fund Alphadyne loses $1.5bn in rates short squeeze[more]

    Goldman's China hedge fund clients had second-worst month ever From Bloomberg: Goldman Sachs Group Inc.'s hedge fund clients focused on Chinese stocks recorded their second-worst monthly loss ever in July, according to client data compiled by the bank. Fundamental long-short m

  5. SPACs: As SPAC creators get rich, how incentives are shared remains murky, Singapore's fintech firm FinAccel to list in U.S. via $2.5bn SPAC deal, Grab partially delivers the goods ahead of SPAC, Cohen SPAC to merge with business services firm Pico[more]

    As SPAC creators get rich, how incentives are shared remains murky From WSJ: Many investment executives who back special-purpose acquisition companies are scoring big paydays as more deals get completed. Some of their clients are missing out. The divergence results from the varying m