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Alternative Market Briefing

The Corona Fighters Report 46: Asset managers who delivered in the downturn

Tuesday, June 16, 2020

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B. G., Opalesque Geneva:


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


Update: Possibly some of the best funds of funds in 2020

Eagle's View Capital Partners, L.P. is estimated at +1.88% for May, 2020 with YTD performance of +6.13% (net). The fund of funds, launched in May 2010, has annualised +5.5% since inception, compared to +2.5% for the HFRI FoF Composite Index.

"The essence of our strategy is that we do not rely on global macro predictions to generate returns," says a monthly report reviewed by Opalesque. "The fund seeks to capitalize on market inefficiencies often overlooked by most traditional hedge fund investment vehicles. The investment manager has historically focused on investing predominantly in 'niche-oriented' hedge fund strategies that seek to exploit an 'edge' or a structural inefficiency in the marketplace and which show little or no correlation to mainstream asset classes such as equities, fixed income, or commodities markets. The fund is broadly diversified amongst an array of specialized strategies. Underlying liquidity within the portfolio is also a paramount consideration for the fund."

The firm's Offshore Fund, Ltd. Class G is estimated at +1.98% for May, 2020 with YTD performance of +7% (net).

The Dedicated Fund, L.P. , an insurance dedicated fund, is estimated at +1.95% for May, 2020 with YTD performance of +8% YTD (net).

And Eagle's View Partners, Ltd. , the firm's multi-strategy hedge fund, is estimated at +2.50% for May, 2020. YTD performance is estimated at +5.8% (net). At this time, the fund is focused upon electricity trading across the US grid, US new issues trading (IPOs, secondaries and blocks), and ETF redemption/creation strategies.

"Our multi-strategy hedge fund has built out a core nucleus of strategies that is generating consistently positive results," says a manager commentary reviewed by Opalesque. "Toward the end of May, we made our most recent hire, an electricity trader focused on the Texas region (ERCOT). As the summer season gets into full swing, we expect Texas to potentially generate material returns given last summer's substantial opportunities in the region." The firm will be raising capital over the coming months and look into hiring.

"Eagle's View continues to "walk the walk"," says CIO/president Neal Berger. "On balance across our fund of funds offerings, we are outperforming the HFR Fund of Fund Index by roughly 1,000 basis points year to date. Clearly, we are doing something different.

"2020 will go down in the books as an important year for hedge fund allocators to examine how managers performed during the various market environments we've witnessed over such a short period of time. Specifically, the months of March, April, and May have endured both a bear market and bull market as most commonly defined, all within this short three-month period. Furthermore, the markets have been chaotic and illiquid at times affording an allocator further intelligence as to how a manager handles risk and liquidity. It has become crystal clear as to who is correlated to the direction of markets and who isn't during these past months. There has been no hiding as market moves have been too material and too chaotic simply to "get lucky". Having been an allocator to hedge funds for the past 23 years, I have no interest in a manager who suffered material drawdowns during March only to make it all back during April and May on the market bounce. That is simply the market bailing out those managers who were frozen in place and hoping. We don't invest in hope."

Eagle's View Capital Management LLC, is based in New York city.

Eagle's View was featured in our first Corona Fighters report, and Neal Berger presented his funds in the webinar, "The Corona Fighters Episode 1", which you can replay here. He was also interviewed on Opalesque TV a few months ago.

Related article: 18.March.2020 Opalesque Exclusive: New York hedge fund says it is "simply not exposed" to mainstream markets


New fund investing in carbon-neutral economy

The Massif Capital Real Asset strategy is up +23% as of 15th June. It was up 3% in Q1 and has returned +15% since its June 2016 inception. Returns are calculated using a geometric average.

The $10m fund uses a global long/short equity strategy built around bottom-up stock picking. "We are focused on creating a portfolio of businesses from within the energy, basic materials and industrial sectors that balance the environmental and economic realities of achieving a carbon-neutral economy," says its website. "Every firm in the portfolio is carefully selected based on our ability to buy it at a discount to intrinsic value and the firm's ability to sustainably create wealth in an economically and environmentally sound way."

It is managed by co-founders Will Thomson and Chip Russell at Massif Capital, based in Charlotte, NC. The firm also runs separately managed accounts.


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Last issue of The Corona Fighters Report: Report 45.

Opalesque's Corona Fighters reports are open articles. To see all past reports, please type Corona Fighters in the Opalesque 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:

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/


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