INVESTMENT PHILOSOPHY
OUR MISSION
To deliver consistent levels of return for our investors of 15% to 20% p.a. on a 3 year rolling cycle, as we set new standards in transparency and service.
OUR FOCUS
Our focus is based in the SA Fixed Income market, where we look to generate returns through our core investment strategies. We create a return blended from cyclical, secular relative value and directional opportunities across government bonds, cash and interest rate derivatives such as FRAs, Swaps and Options.
RESEARCH
Underlying this is an investment process based on macroeconomic research to identify these opportunities and monetise them in the most efficient way from a risk management perspective.
AIM
Our aim is to build long term relationships with our investor base where there is equilibrium between sustainable out performance and capital preservation. We want to educate long term investors in South Africa of the massive upside to having exposure to the fixed income asset class which has long been over looked in the alternative investment space.
HEDGE FUND
Good risk adjusted returns within the fixed income hedge fund space
- Compounded annual return for the past 5 yrs 10.2%
- Sharpe ratio of 0.4
- Sortino ratio of 0.2
MONTHLY INVESTMENT PERFORMANCE
Maximum drawdown
-3,258%
Targeted return
2 to 3 X cash
Risk managed using the
Value At Risk
methodology
Track record
5 years
CORE INCOME FUND
MONEY MARKET FUND
Overview
- Highly competitive sector where client diversity helps to offset same day liquidity risk
- Trade bank paper out to 13 months to maximise shadow banking same day liquidity vs term duration pickup offered by banks
- The fund is a short to long term investment aimed at clients looking for yield pickup and minimal liquidity constraints
- The fund is aimed at conservative investors with a low risk appetite looking for marginal market out-performance and capital preservation.
Objective
- Maximising risk adjusted overnight interest returns by investing in bank duration
- Investments in money market instruments, overlaid derivative instruments and cash
- A three to five years rolling return though interest rate cycles ensuring long term interest rate objectives are achieved
Investment Process
- The underlying investment will have a portion of the portfolio continually re-invested into the maximum duration allowable
- The interest rate curve will be traded to take advantage of forward curve anomalies on a one for one hedging strategy