Tue, May 21, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

DECALIA launches a Merger Arbitrage fund with W Capital

Tuesday, October 16, 2018
Opalesque Industry Update - The investment management company DECALIA continues to develop its range of funds with the launch of a merger arbitrage strategy. This strategy aims at generating an attractive absolute performance with low volatility, while remaining uncorrelated with conventional assets.

Management of the fund has been entrusted to W Capital, a specialist in this strategy with one of the best track records in the industry. This fund is aimed at qualified investors and is structured in the form of a Luxembourg Reserved Alternative Investment Fund ("RAIF").

A capital preservation strategy

The merger arbitrage strategy aims at generating - under all market conditions - absolute returns with a low volatility and uncorrelated with conventional assets. The strategy involves taking advantage of price differentials in merger and acquisition events on listed companies.

The fund's very rigorous investment process focuses on the risk/return ratio of each transaction. The portfolio is highly diversified, with an average of 70 holdings, and focuses on already-announced merger operations, both friendly and hostile.

An excellent track record, accessible for the first time in a Luxembourg SICAV-RAIF

True to its principle of retaining the best available managers, DECALIA has entrusted the management of this strategy to W Capital, an alternative management specialist belonging to a European family-owned group. The main fund manager, Gwénaël Le Carvennec, has more than 20 years' experience in arbitrage strategies.

For 10 years, he headed the technical arbitrage operation of Banque d'Orsay (taken over since by Oddo & Cie). W Capital's strategy has established an excellent track record since 2010, with some very consistent results over the past 7 years and low volatility. Furthermore it widely outperforms the HRFX Merger Arbitrage benchmark index.

"With this new fund, we continue to expand our range of alternative investment solutions uncorrelated with conventional asset classes, which also enables us to meet the needs of sophisticated clients such as family offices and institutional investors," stated Xavier Guillon, Partner and Head of DECALIA Funds.

"After many years, we have decided to open up our arbitrage strategy to external investors. Our meeting with the DECALIA teams convinced us that they were the right partner," explained Gwénaël Le Carvennec, Main Fund Manager and Head of Merger & Acquisitions Arbitrage at W Capital.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Cryptocurrency thefts, scams, and fraud top $1.2bn in Q1[more]

    Laxman Pai, Opalesque Asia: Crypto criminals and fraudsters stole more than $1.2 bn through cryptocurrency thefts, scams, and fraud in the first quarter of 2019, a report revealed. Criminals stole more than $356m from exchanges and infrastructure during this period, according to a report by c

  2. Redemptions hit quant king AQR in performance slump[more]

    From Financial News: AQR Capital Management, one of the biggest quantitative fund managers, is undergoing a prolonged performance downturn that has led to investors withdrawing increasing amounts in 2019. The Connecticut-based firm, which manages both hedge funds and mainstream long-only funds,

  3. FWM Holdings buys $2bn fund manager Optima Fund Management[more]

    Laxman Pai, Opalesque Asia: New York-based FWM Holdings, the parent company of Forbes Family Trust (FFT) and LGL Partners, multi-family offices serving ultra-high-net worth families, agreed to buy Optima Fund Management, an early fund-of-funds player with $2bn in assets. The deal is expected

  4. Opalesque Exclusive: Paris-based hedge fund manager opens seeding programme for niche strategies[more]

    B. G., Opalesque Geneva for New Managers: Melanion Capital, an independent investment manager based in Paris, is launching a seeding programme that can house two to thr

  5. People: Hedge funds raid BNP's shuttered prop desk amid talent race[more]

    From Bloomberg: BNP Paribas SA's closure of its proprietary-trading desk has triggered a hiring frenzy for the world's biggest hedge funds. Citadel has recruited Mathieu Gaveau, who was head of rates at BNP's Opera Trading Capital division until it was shut down in January. Paolo Nicolosi, a se