LindenGrove's new global macro hedge fund is positioned for relatively positive outlook
The LindenGrove Capital Master Fund is a
fundamental fund launched last month
in London, which pursues a combination
of directional macro and relative value
strategies.
We recently heard about a new London-based firm
called LindenGrove Capital when French hedge fund
seeder NewAlpha Asset Management announced it
had invested in the firm's discretionary global macro
hedge fund.
According to the announcement, the LindenGrove
Capital Master Fund implements a wide array of
discretionary global macro strategies within a
multi-strategy, multi-manager framework, similar
to the successful model run by the founder while
he was at Nomura. The Fund allocates the capital
dynamically between separate portfolios employing
macro directional, directional relative value and
pure relative value strategies on liquid markets and
products. A systematic risk management framework
is implemented to limit downside risks at both the
individual and the fund level. Some of the instruments
that are used include futures in rates as well as
equity indices, OTC interest rate derivatives (swap or
options), government bonds, credit indices, index
options and foreign exchange options.
Launched on December 12th 2012, the Fund targets
an absolute performance of 10-15% per annum with
8% annual volatility. It returned 0.28% (Class A USD)
and 0.23% (Class B EUR) net that month. The primary
performance contributors were, according to the
fund's monthly report, a long position in FX volatility;
long 2-year swap spread position in USD; short
position in USD rate duration; and tactical directional
trading around the fiscal cliff story both in FX and in
equity indices.
Borut Miklavcic, founder and CIO of Linden......................
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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
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