Investment Objective
Actively managed long/short corporate credit strategy investing predominantly in high yield, investment-grade bonds, credit default swaps, distressed debt, equities and bank loans, , targeting a net return of between 5% and 10% in USD depending on the opportunity set, with contained volatility.
Latest Meeting Note
Meeting 19 Dec 2023
The GCA Credit Long/Short fund is a long/short corporate credit strategy, focusing primarily on high-yield, investment-grade and some distressed opportunities, largely in the US. It is designed as a complementary addition to traditional ... Read more
The GCA Credit Long/Short fund is a long/short corporate credit strategy, focusing primarily on high-yield, investment-grade and some distressed opportunities, largely in the US. It is designed as a complementary addition to traditional fixed-income portfolios, aiming for a return between 5% and 10% in USD with controlled volatility. The investment process is built on rigorous fundamental research to exploit information-based opportunities. It follows a 5-step process that begins with an initial screening of the investment universe. This phase includes a comprehensive assessment of liquidity, sector, proprietary screens and macroeconomic drivers. It is complemented by an in-depth sector analysis and a thorough review of existing research and publications. Following this, the process advances to idea sourcing, where the best potential investment candidates are identified. This step integrates a detailed analysis of company fundamentals, pricing structures, and the scouting for potential regulatory, legal, or tax issues that could impact valuation. From here, ideas are allocated to one of the four strategies the portfolio is built upon: Directional, Relative Value, Event Driven, and Select. The final stage of the process is the ongoing monitoring of valuation and liquidity on each position as well as at the portfolio level. The portfolio typically consists of 100+ positions with a gross exposure of 100-300%, adjusted dynamically depending on the opportunity set. Net exposure, which is dictated by the bottom-up portfolio construction will range from -50% to +100%.
Performance
JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | YTD | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2023 | 0.0 | 0.1 | 0.1 | 0.0 | 0.1 | 0.7 | 0.4 | 0.6 | 0.4 | 0.4 | 0.2 | 0.2 | 0.1 | |
2022 | 0.4 | 0.6 | 0.8 | 0.1 | 0.5 | 0.9 | 0.9 | 0.6 | 0.0 | 0.2 | 0.8 | 0.1 | 0.9 |