Investment Objective
The Fund's objective is to target above average returns in a fund that mixes a concentrated long and short equity portfolio (long biased) with an overlay of merger arbitrage (long/short pairs or longs) and opportunistic tail risk hedging.
Latest Meeting Note
Meeting 26 Mar 2021
The Varenne Capital Global Fund's investment objective is to deliver superior long-term returns with the minimum necessary risk taking. The strategy is implemented via equity long/short, merger arbitrage and tail risk hedging trades. The... Read more
The Varenne Capital Global Fund's investment objective is to deliver superior long-term returns with the minimum necessary risk taking. The strategy is implemented via equity long/short, merger arbitrage and tail risk hedging trades. The longs are based on economically strong businesses trading at a 50%+ discount, while short opportunities are found in businesses likely to face a capital event within 18/24 months. The fund is typically long biased, but shorts are used as a source of alpha generation. Merger Arbitrage trades are very much special situations in nature, with the fund willing to enter the market when they view an adequate risk/reward payoff but are happy to stay on the side-lines when conditions aren’t right. There is a strict approach to using proprietary research only, with extensive use of screening and scoring systems, expert networks and personal expertise from careers as business consultants, with a ‘private equity’ style approach taken towards due diligence. Finally, tail risk hedging is implemented as an insurance policy to insulate the portfolio from major corrections.
Performance
JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | YTD | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2023 | 0.8 | 0.7 | 0.5 | 0.9 | 0.2 | 0.7 | 0.3 | 1.0 | 0.1 | 0.4 | 1.0 | 0.1 | 0.1 | |
2022 | 1.0 | 0.8 | 0.2 | 0.4 | 0.7 | 0.2 | 0.2 | 1.0 | 0.3 | 0.5 | 0.9 | 0.9 | 0.1 |