Sun, Apr 18, 2021
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Opalesque Exclusive: London manager to launch absolute return options fund

Wednesday, February 17, 2021

B. G., Opalesque Geneva for New Managers:

Carmika Partners LLP is a discretionary investment manager that specializes in quantitative volatility trading. The firm is about to launch Carmika Absolute Return Fund Master Ltd, domiciled in Delaware.

The firm's Carmika US Alpha Hedge Strategy (AHS), an absolute return options strategy targeting low double-digit returns, will be put in the fund.

"We are running an absolute return S&P500 index strategy that takes advantage of investor behavioural biases/flows and how they impact U.S. volatility markets," Michael Cameron, Head of Investor Relations and Operations, tells Opalesque.

"We generate alpha through taking advantage of richness/cheapness in options while maintaining an investment objective to be complimentary to risk assets. The strategy uses a proprietary, quantitative model to seek opportunities in volatility, which are then analysed, stress-tested, and implemented through discretionary management by a team with +20yrs of capital markets experience since working together at Goldman Sachs since the late 90s."

The managers are aiming to launch mid-March with $5m in AuM.

Carmika was formed in 2015; it is based in London and manages $15m in AuM. It is jointly owned and managed by Martin Vestergaard, Manjeet Mudan, and Michael Cameron.

Portfolio managers Mudan and Vestergaard worked most recently at ADG Capital. Each has more than 20 years of experience in risk management, quantitative options trading, and options market making. Cameron was Head of Institutional Client Coverage at ETF Securities in the U.S.

AHS is an all-weather equity index options strategy. It aims to be negatively correlated to risk assets and looks to generate positive returns during market drawdowns, and alpha throughout market cycles. The strategy looks to capture volatility mispricings and inefficiencies in U.S. liquid equity index options.

The strategy went live on Jan 17th, 2017. It returned 16% in 2020, with good positive performance in Q1, and has had an average monthly return of 0.7% since 2017 (SPX + Carmika at 1.2% p.m.)

The feeder fund of Carmika Absolute Return Fund Master is Cayman-domiciled Carmika Offshore Fund I Ltd, which was incorporated in December 2020.

Related article:
03.Sept.2020 Opalesque TV: Meet a Swiss fund manager who hedges with a difference

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