Mon, Apr 19, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

New aviation fund returns 20% in February by betting on recovery

Monday, March 08, 2021

amb
Mohshin Aziz
B. G., Opalesque Geneva:

2020 resulted in the worst ever global airline financial performance. From a position where 2019 profits were just under $26bn, losses are expected to be over $118bn in 2020, according to KPMG. The prevailing hope is that the vaccine will allow for some form of summer season, but this remains to be seen. Like previous downturns, there will be winners and losers. Those that manage cash burn and maintain liquidity will be best placed to prosper.

A fund seized this opportunity and launched in early January. In February, the NAV of the Pangolin Aviation Recovery Fund rose 20.10% (net) to US$112.20.

"Airlines and online travel agencies (OTA) have performed well in February 2021," says portfolio manager Mohshin Aziz in a monthly report. "The average month-on-month return for both airlines and OTA in February was 21%. This is the second-highest monthly returns for both sectors since 2010. The highest month-on-month return was achieved in November 2020 when news of the successful Covid-19 vaccines came out. We missed the November 2020 party, but we rocked this one."

The fund invests (long and short) in aviation-related businesses. It is 89% invested, spread across five industry sectors and five continents. The top-five holdings represent 50.3% of the portfolio: Shanghai Airport, Spirit Aerosystems, Japa......................

To view our full article Click here

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: Atlas Holdings closes fourth PE fund at $3.1bn, Zigg Capital nabs $225m to invest in proptech startups, Canvas Ventures raises $350m to help bring intentionality back to early-stage investing, BlackRock and Fidelity launch first green bond ETFs[more]

    Atlas Holdings closes fourth PE fund at $3.1bn From PE Insights: Atlas Holdings has held the first and final close of its fourth private equity investment fund, Atlas Capital Resources IV LP (ACR IV) at its hard cap of $3.1 billion. The latest fundraising, which began in Novembe

  2. SPACs: UK stock market to lure SPACs with rules overhaul, Nuvation Bio flounders after EcoR1 SPAC merger, Singapore Exchange may launch regulatory framework for SPACs by mid-2021, SPAC listings slow to a crawl with bankers buried in paperwork[more]

    UK stock market to lure SPACs with rules overhaul From Yahoo Finance: Britain's financial watchdog has fired the starting gun on plans to overhaul stock market rules in a bid to lure more SPACs to the London market. The Financial Conduct Authority (FCA) on Wednesday said it woul

  3. New Launches: Amundi launches Just Transition for Climate fund, Index Ventures launches $200m seed fund, China's Hosen Capital hits $800m hard cap for third US dollar fundraise, Shackleton launches fifth venture secondaries fund[more]

    Amundi launches Just Transition for Climate fund From Bloomberg: Amundi has launched a European fixed income fund that will support energy transition. The Just Transition for Climate fund is managed by Alban de Fa?, head of fixed income ESG investing, and Dany da Fonseca, credit portfo

  4. SPACs: Investors see $90bn SPAC craze fizzling in the next year, US regulator turns spotlight on rosy SPAC projections, SPACs drive March M&A record, but other infotech players are still buying, Blank-check ETFs keep coming even as SPAC fever cools down[more]

    Investors see $90bn SPAC craze fizzling in the next year From PE News: Investors overseeing almost $13tn in assets say the frenzy around Spac listings will slow over the coming 12 months, predicting a spate of high profile failures will suppress appetite for so-called blank-cheque comp

  5. PE/VC: 'Frustrated' limited partners are questioning PE-sponsored SPACs, European venture reaches all-time high in the first quarter of 2021[more]

    'Frustrated' limited partners are questioning PE-sponsored SPACs From Institutional Investor: It's hard to imagine that private equity firms would have stayed out of the booming business of special-purpose acquisition companies. But private-equity-sponsored SPACs could lead to conflicts