Sat, Aug 20, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Emerging Markets Manager, Broad Reach, continues strong performance run

Friday, April 08, 2022
Opalesque Industry Update - Broad Reach Investment Management, the London-based emerging markets macro manager, has continued its strong run of returns with net gains of 4.7% in its Broad Reach Fund, and 7.6% in the Broad Reach Explorer Fund to add to +15.45% and +25% net respectively, achieved in 2021.

Broad Reach is the only EM macro manager trading a full systematic program alongside discretionary strategies. This approach has been successfully applied to the flagship Broad Reach Master Fund which, since launch in 2016 to end 2021, has generated annualized net returns of 10.3%. The Explorer Fund, launched in 2019 is exclusively systematic.

"Emerging Markets embody a wide range of alpha streams, and certain EM macro strategies are better implemented systematically, namely carry and momentum" explains Bradley Wickens, Founding Partner. The system can take advantage of the breadth of the EM universe in ways that a purely discretionary manager cannot match. This approach frees our discretionary investment team to focus its attention on specific, idiosyncratic strategies, matching risk to opportunity."

The Master Fund invests in FX, equities, rates, credit and commodities across nearly 50 countries, and adjusts the risk allocation to reflect the opportunity set and market structure. Typically, allocation to systematics is 40%-50%, special situations, 10%-50%, and discretionary macro, 10%-50% often scaled-up during regime shifts. Returns from each of these three segments are uncorrelated.

"In the current geopolitical turmoil, as some investors have become wary of emerging markets, Broad Reach's dynamic approach continues to demonstrate that strong returns are available from a wide range of positions at acceptable levels of volatility," Wickens concluded.

Broad Reach Investment Management has an aum of some $750m, towards $600m of which is invested in the flagship Broad Reach Fund. The firm is closely aligned with investor interests through substantial invested partner capital and a high degree of client transparency.

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. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  2. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  3. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: Castle Hall, the Du

  4. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve

  5. Opalesque Exclusive: This European mezzanine debt strategy offers equity-like returns with downside protection[more]

    B. G., Opalesque Geneva for New Managers: Mezzanine financier SIG-i operates in a relatively uncrowded space by proactively manufacturing financing solutions as an alternative to traditional debt and equity instrume