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 $2.5bn AUM 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$2.5bn 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
- 24-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 AUM
as a % of AUM
Geographical Exposure as a % of AUM
as a % of AUM
Top 10 Position Details
Investment Manager's Commentaryas of 28/02/2020
Market Review and Outlook
After a strong start, equity markets fell sharply at the end of February on accelerating concerns regarding the coronavirus outbreak. Japan was the weakest region, while Asia Ex-Japan was relatively resilient as infection rates in China began to decline. All sectors experienced significant declines, with Financials and Energy the hardest hit and Real Estate, Healthcare, and Telecommunications proving more defensive. Oil dropped substantially on fears of falling demand, and sovereign bonds and gold rose as investors sought protection in safe haven assets. Equity volatility spiked and credit spreads widened, particularly in high yield. Convertibles generally proved to be defensive and the primary market was surprisingly active with $9.3Bln of new deals, the vast majority of which came in the US.
The Fund performed in line with expectations, capturing less than 40% of declines in global equity markets. Holdings in Asia Ex-Japan were top performers, advancing during the month, while Japan was the weakest region on underlying equity declines. Telecom and Healthcare names outperformed, while Industrials and Technology were the largest detractors. The Fund moderately underperformed the benchmark during the month. Index holdings in Japan and Europe were considerably more bond-like than those in the Fund and the underlying stocks of Index holdings (e.g., Tesla) outperformed in the US. Activity early in the month was focused on risk reduction, exiting names that had moved too far up the curve. As market declines accelerated, bond-like names were sold to opportunistically purchase convertibles that had become more balanced, particularly higher gamma profiles with solid bond floors.
Facts & Documents
Fund Domicile: Luxembourg
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
Institutional EUR-Hedged Capitalisation Share Class
ISIN: LU1538866879 Ticker: ALZIECH LX Launch: 18 Jun 2019
available upon request