Alceda Global Navigator Fund
Fund Objectives & Strategy
The fund aims to generate target returns of 6-8% p.a. after all fees with low volatility through the full economic cycle. The fund invests predominantly in fixed income and currencies with limited exposure to equities. As well as holding physical long positions the Manager may use derivatives to create synthetic long and short positions.
Risk Management
The fund is a UCITs IV fund with daily liquidity. Fund managers Alceda pre qualify all investments and constantly monitor the portfolio to ensure compliance with UCITs rules on gearing, value at risk (VaR), liquidity, counter party risk and investment concentration.
Current Strategy – Last update January 2012
Through the month of January the Global Navigator benefited from a meaningful rally in the credit markets for which the fund was almost perfectly positioned.
High beta credit risk was added in December and early January in anticipation that the seemingly obvious very positive impact of the first ECB LTRO would become more widely discussed and recognised.
A short period of living with a market oblivious to the benefits of the huge ECB liquidity injection has been followed by market pricing moving to a new equilibrium point that includes the assumption that a financial system meltdown is off the table.
Looking forward, Greek PSI, Fed Policy and ECB LTRO II are all supportive of further credit market improvements.
So whilst we have taken profits on some positions that met short term return targets, we remain very bullish on the specific credit assets that we hold in the portfolio. Our cash flow remains fully intact and will continue with a very high degree of certainty. Over time, this will be reflected in higher prices for our assets.
The New Issue market has been very busy and we made profits on pretty much every deal. As ever, getting decent allocations was not easy and towards the end of January the inevitable appearance of weaker names started, this will no doubt continue until buyers go on strike over pricing or name quality. This is some ways off.
Otherwise from a hedging/“risk-off” perspective we have remained long US$ and have scaled in to some small short positions in Equities. These positions are moderating returns but provide some protection against a sentiment reversal.
Current portfolio available on request. Click here for latest Factsheet.
About Alceda Fund Management SA
Founded in 2007, Alceda Fund Management S.A. is a Luxembourg based subsidiary of the German Aquila Group. Alceda focuses on providing institutional investors, asset/fund managers, banks and family offices with tailored investment solutions with current assets under administration of over EUR 4.5 billion across a variety of different products.
For more information http://www.alceda.lu/en/about-alceda.html
