Alma Zazove Global Convertible Fund
- Alma Zazove Global Convertible Fund invests in convertible bonds globally.
- Management of the fund is delegated to Zazove Associates, LLC (US), an SEC-regulated asset management firm founded in 1971, with $3.1bn1AUM from institutional and private wealth clients.
Cumulative Performance (%)
Fund Inception 30 November 2016
The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Strategy & Manager
The investment objective of the Fund is to provide global equity-like returns with significantly less risk
- The objective is achieved by seeking to capture the majority of stock market advances while simultaneously providing downside protection during market declines
- Statistical focus on convertible structure is used to create a balanced, diversified portfolio that optimizes the asymmetrical risk/reward characteristics of convertibles
- The investment approach is not reliant on forecasting or market timing
- The Fund targets a consistent risk/reward profile at all times
Zazove Associates, LLC (U.S.A.) is an SEC regulated investment advisor that has specialized in the management of convertible securities since 1971
- The firm manages US$3bn for global institutional investors
- The firm is independent and 100%employee owned
- Zazove has expertise across all segments of the market: US, global, and high yield (“busted”) convertibles
- 22-year track record managing global convertibles
Gregory D. Shorin, JD, CFA Portfolio Manager -Global
Prior to joining Zazove in 1997, Greg was a Senior Associate with the law firm of Baker & Botts where he specialized in the analysis of pricing practices by foreign corporations. He served as Senior Counsel in advising the US Department of Commerce on international trade.
Greg earned his JD from the Georgetown University Law and his BA in Economics and Political Science from SUNY Binghamton.
Gene T. Pretti, Chief Executive Officer & Chief Investment Officer
Prior to acquiring Zazove Associates in 1989, Gene worked for First Boston Corporation where he specialized in institutional equity sales. He also has served as an analyst with CUNA Mutual Insurance Co. and Robert W. Baird &Co. He earned his MBA from the University of Wisconsin where he was selected for the Applied Program, an honors program emphasizing Security Analysis and Portfolio Management.
Statistics & Commentary
The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
Sector Breakdown as a % of AUMas of 31/12/2018
as a % of AUMas of 31/12/2018
Portfolio Characteristicsas of 31/12/2018
|No. of securities||65||218|
|Investment Premium (%)||18.0||12.4|
|Conversion Premium (%)||40.4||44.2|
|Yield to Maturity (%)||0.4||-0.4|
|Current yield (%)||1.8||0.8|
Top 10 Position Detailsas of 31/12/2018
|Security name||Sector||% AUM|
|Bunge Ltd||Consumer non-cyclical||2.97|
|Workday Inc||Information Technology||2.60|
|Toray Industries Inc||Materials||2.54|
|Liberty Interactive LLC||Communication Services||2.50|
|Weibo Corp||Communication Services||2.47|
|Liberty Media Corp||Consumer Services||2.40|
|Stmicroelectronics NV||Information Technology||2.31|
|BP Capital Markets PLC||Energy||2.24|
Investment Manager's Commentaryas of 31/12/2018
Market Review and Outlook
Market volatility peaked in December as concerns regarding economic growth, US/China trade, and central bank policy drove equity and credit markets dramatically lower. US small cap and growth stocks were hardest hit, causing significant losses in high-delta Technology convertibles. Japanese equities were also particularly weak. Fund holdings exceeded the projected level of convexity, providing substantial downside protection during the selloff. The Americas and Japan were the primary detractors, while Africa/Middle East, Asia Ex-Japan, and Europe proved relatively defensive. Financials and Healthcare were the worst performing sectors, while Fund holdings in Technology outperformed both the sector and broader markets. Underperformance relative to the Thomson Reuters Global Focus Index was primarily attributable to balanced Fund holdings in the Financial sector that were not present in the Index.
Despite the stress in markets, trading in convertibles remained orderly with ample liquidity. Equity declines increased the availability of balanced structures, particularly in the US, while Asian and European convertibles generally became more bond like. Market movements provided abundant opportunities to improve risk/return structure in the Fund. US Technology names were purchased at attractive levels on weakness in the sector, and positions in recent new issues were increased at favorable valuations. Sales included names that had become more bond-like in Europe and the Middle East.
Facts & Documents
Fund Domicile: Luxembourg
Management Fee: 0.80% p.a. for I shares
Fund Type: UCITS SICAV
Fund Launch: 30 November 2016
Base Currency: USD
Depositary, Administrator, Transfert Agent: BNP Paribas Securities Services (LU)
Dealing: Each day with a 1-day notice
Cut-off time: 12pm CET
Management Company: Alma Capital Investment Management SA (LU)
Investment Manager: Zazove Associates, LLC (USA)
Fund Managers: Greg Shorin, JD, CFA
Countries where the fund is registered:
Luxembourg, France, UK
Institutional USD Capitalisation Share Class
ISIN: LU1494400200 Ticker: ALZICUS LX Launch: 30 Nov 2016
available upon request