Pelagus Capital Fund

The Pelagus Capital Fund ("Pelagus") was launched in April 2007 and applies a discretionary fixed income relative value and macro strategy. Trading primarily derivatives instruments, the strategy is focused on the liquid fixed income and rates markets in G12 countries and the EU.

At the heart of the investment process is the management of risk with its pre- limits that seek to maintain risk levels consistent with those of the fixed income markets.

While the strategy is discretionary, it utilizes an internal proprietary quantitative trade evaluation system that is the genesis of every trade in the book. Market opportunities identified by the quantitative models originate from a bottom-up process. Investment decision is dependent on a top down qualitative assessment of the investment managers, drawing on their expertise and current knowledge of market conditions, with a particular emphasis on liquidity.

The quantitative investment process ensures consistency of approach and selection of investments by the investment management team. . While investment decisions are discretionary, the quantitative investment process enables an objective approach when determining allocation, optimization and risk management.

>The expertise of the team in options enables Pelagus to focus on risk adjusted return generation as well as prioritizing drawdown risk management. As a result of this investment philosophy Pelagus has demonstrated a low correlation to the markets*. Since its inception, Pelagus has maintained a low drawdown profile due to its diversified portfolio and unique risk management.

Key attributes of the Fund are:

  • Focus on drawdown risk with options expertise to better capture relative value opportunities
  • Two tier risk management utilising proprietary risk engines and independent risk monitoring
  • Since inception, there has been low correlation to the market *
  • Scalability and consistency of investment process and proprietary models
  • Strong support services drawn from external service provider
  • Strong risk adjusted performance since launch despite turbulent markets with limited drawdowns
  • Focus on liquid markets with a liquidity as key determinant in qualitative assessment

* Past performance is not indicative of future performance.

Active Fixed Income Value Fund (UCITS)

The Active Fixed Income Value Fund was launched in July 2016 and employs a discretionary arbitrage-based investment approach. The Fund trades in interest rates and Foreign Exchange arbitrage strategies and invests in G12 and EU markets with minimal net long or short bias. The portfolio will consist primarily of derivatives and options, either in the over-the-counter or exchange listed, which are all highly liquid.

At the heart of the investment process is the management of risk with its pre-defined limits that seek to maintain risk levels consistent with those of the fixed income markets.

While the approach is discretionary, it utilizes an internal proprietary quantitative trade evaluation system that is the genesis of every investment in the portfolio. Market opportunities identified by the quantitative models originate from a bottom-up process. Investment decision is dependent on a top down qualitative assessment of the investment managers, drawing on their expertise and current knowledge of market conditions, with a particular emphasis on liquidity.

The quantitative investment process ensures consistency of approach and selection of market opportunities by the investment management team. While investment decisions are discretionary, the quantitative investment process enables an objective approach when determining allocation, optimization and risk management.

In our opinion, our UCITS vehicle will offer absolute performance and diversification from trends in bond and equity markets, providing long convexity behavior to protect the portfolio in difficult market conditions. We are the view that this product is an all weather fund, able to perform in most market conditions.

Key attributes of the Fund are:

  • Focus on drawdown risk with options expertise to better capture relative value opportunities
  • Two tier risk management, utilizing proprietary risk engines and independent risk monitoring
  • Low correlation to the market, since inception*
  • Scalability and consistency of investment process and proprietary models
  • Weekly liquidity for investors
  • The Fund is highly liquid and liquidity is a key determinant in qualitative assessment

* Past performance is not indicative of future performance.

Bespoke investment solutions

We capitalize on our strong expertise in Fixed Income, foreign exchange and options markets and apply our proprietary investment systems to find solutions to meet client's demands and constraints.

We combine our know-how of structuring vehicles around the Alternative Investment products and our capability to understand clients' needs to find tailored solutions.

Diverse solutions for different needs

From "Partnership on best ideas" to "Smart Beta" or "Overlay", specific formulas are proposed to take advantage of unique investment opportunities, to create beta replication portfolios or to provide positive convexity and options-based solutions to complement a long duration exposure.

Proactive investment approach. Well diversified with low volatility