AERA Fund SICAV Event Driven Opportunities

Per4m Event Driven Opportunities invests across the capital structure with an event-driven approach in Europe and North America. The focus is on hard catalyst and deep value situations offering attractive convexity. The manager is broadly interested in situations where a catalyst creates ‘discontinuity’ in the market’s perception of company fundamentals. The portfolio manager, Tullio Salvatore, has over 20 years of investment experience (Elliott Management, Magnetar Capital and Tyrus Capital recently) and started his career as an investment banker in 1998. The portfolio is expected to have 15-30 high-conviction positions with a bias toward merger arb trades (60-75% of risk). The equity/stressed credit special situation component is typically 20-40% of risk, depending on the opportunity set. It includes spin-offs, proxy fights, capital arbitrage, etc. The investment philosophy is very much opportunistic, with the manager dynamically adjusting sizing (based on 2.5% maximum break risk) and portfolio leverage. There is also a portfolio hedging overlay that aims to contain risks which are not idiosyncratic. The fund targets high-single digit absolute returns (although on a short-term basis they remain a function of the opportunity set), with limited volatility and market correlation. The fund launched in August 2019 (the early bird share class is priced at 1% / 10%).