Redhedge Relative Value UCITS Fund

Redhedge was founded in 2014 by Andrea Seminara (co-founder, CEO, CIO) with a focus on a single liquid relative value corporate bond strategy, that was originally offered as a weekly ICAV in 2015 and more recently as a daily UCITS. The genesis of the strategy comes from European investors facing a challenge to diversify their cash and bond allocations, particularly in an era of negative rates on deposits, with the Redhedge team looking to provide a liquid alternative solution with low volatility, drawdown limitation and the ability to generate upside. The strategy is fundamental in nature and looks to uncover attractive opportunities in the corporate bond world due to low price, valuation and/or market expectations. Areas of opportunities tend to fall into one or more of the following categories: improving/deteriorating credit quality, bond supply and demand (including analysis of potential buyers and sellers), and dislocations between derivatives and underlying bond pricing. The investment process emphasises bottom up security selection based on both the PM's and third party proprietary fundamental research, combined with in-house quantitative models, with a short to mid-term horizon to provide the best opportunity to find and exploit inefficiencies. The majority of risk (c. 70%) is implemented via curve arbitrage, where the team go long and short two bonds on the same curve but with different maturities but capped to being within three years of one another.