Alma Platinum MidOcean Absolute Return Credit
Cumulative Performance (%)
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
Alma Platinum MidOcean Absolute Return Credit is an open-ended UCITS compliant fund that seeks capital appreciation by generating stable, absolute returns with a relatively high Sharpe ratio and low drawdowns over the long term. The Investment Manager of the Fund is MidOcean Credit Fund Management, L.P.
To achieve this objective, the Investment Manager aims to follow an absolute return credit long/short trading strategy, the Fund intends to follow the MidOcean Absolute Return Credit strategy. The Strategy employs a long/short corporate credit approach focusing on US companies: the Fund primarily invests in liquid short-dated corporate bonds, with a core focus on callable securities and credit default swaps, the combination of relative value positions with outright long or short credit holdings will typically produce a low duration and diversified portfolio.
The Strategy utilises fundamental analysis to seek alpha opportunities primarily in short duration callable bonds,particularly in the ‘crossover seam’ between high yield and investment grade. Portfolio construction is performed with strict constraints on sector and industry exposure and the portfolio seeks to be as close to credit risk and market risk neutrality as possible. The gross leverage is not expected to exceed 750% of the value of the Fund.
Established in 2003, MidOcean Partners is a New York-based alternative asset manager that specializes in middle market private equity and alternative credit investments. MidOcean Credit started in 2009 and manages over $8 billion across a series of alternative credit strategies, collateralized loan obligations (“CLOs”), and customized separately managed accounts.
Head of Absolute Return Credit, Senior Portfolio Manager, Managing Director
Bryan serves as the Head of Absolute Return Credit and is the Senior Portfolio Manager of the MidOcean Absolute Return Credit Fund. In addition, Bryan is a Senior Portfolio Manager for certain liquid products. He is also a member of the Firm’s Investment Committee and Risk Committee.
Bryan has over 25 years of investment experience and has actively managed several multi-billion dollar corporate credit portfolios. He has broad product experience and has employed various investment strategies, including extensive experience executing long/short credit strategies. Prior to joining MidOcean Credit Partners in 2010, Mr. Dunn was a Senior Portfolio Manager at Primus Asset Management where he launched and managed the Primus Absolute Return Credit Fund. Prior to working at Primus, Mr. Dunn headed the Credit Portfolio Management Division at Bank of Tokyo-Mitsubishi where he was responsible for the Bank’s North American proprietary credit investment portfolio. Prior to that, Mr. Dunn founded Dresdner Bank’s credit asset management team and oversaw its investment portfolio. His additional experience includes portfolio management roles in CIBC’s Loan Portfolio Management Group and JPMorgan’s Cash Management Group.
Bryann holds a Bachelor in Economics from Ithaca College and a M.B.A from New York University Stern School of Business
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
as a % of AUM
as a % of AUM
Investment Manager's Commentaryas of
Market Review and Outlook
In November, the DB Platinum MidOcean Absolute Return Credit Fund (I1C-U) returned -0.61% compared to the High Yield (BBG: H0A0), Investment Grade (C0A0) and Global Fixed Income (GFIM) indices that returned +0.27%, +0.22%, and -0.24% respectively. Although the UCITS continues to benefit from healthy income, overall portfolio performance was impacted by a single idiosyncratic material price decline in a telecommunications company. The company’s debt securities declined significantly subsequent to headlines regarding an auction process.
The investment team believes the price declines, which were partially offset by hedges in the same capital structure, were exacerbated by various market technicals. Nevertheless, the team continues to monitor the situation closely and believes there will be a positive resolution over the medium term, which is supportive of the current capital structure.
The investment team continues to defensively position the portfolio in front of the seasonally less liquid year-end period and in front of key potential tariff enactment deadlines. As a result, the portfolio’s overall exposure is near a low point but the team is ready to add exposure following either a successful conclusion to US trade negotiations with China or any market weakness following unsuccessful negotiations. Meanwhile, the team is seeking to capitalize on short-term relative value opportunities as we move towards year-end.
Facts & Documents
Fund Domicile: Luxembourg
Management Fee: 1.34% p.a. for I shares
Fund Type: UCITS SICAV
Base Currency: USD
Depositary, Administrator, Transfert Agent: RBC Investor Services Bank S.A.
Dealing: Weekly with a 3-day notice
Cut-off time: 3 pm CET
Management Company: Alma Capital Investment Management
Countries where the fund is registered:
Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Singapore, Switzerland, United Kingdom
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