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Overview

Share Class

NAV

Cumulative Performance (%)

Fund Inception 20 September 2021

Daily Monthly Ytd 1Yr 3Yr 5Yr Incept. Incept.Date

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

Funds Strategy

Alma Oceanwood Opportunities intends to invest across the broadly defined event-driven universe, allocating capital to the strategies that offer the most compelling investment opportunities while seeking to adhere to a strict risk discipline.

The Investment Manager invests mainly in equities, but can also invest throughout the capital structure of issuers dependent upon the particular opportunity and the point in time of the event investment cycle. The Fund mainly invests in corporations based in Europe, but may also invest a portion of its assets globally.

The Fund is considered as qualifying as a financial product promoting, among other characteristics, environmental or social characteristics, or a combination of those characteristics, under Article 8 of the European Regulation on sustainability‐related disclosures in the financial services sector (SFDR).

 


Investment Manager

Oceanwood Capital Management LLP is a European-focused investment manager specialising in catalyst-driven investment opportunities across the capital structure. Oceanwood was founded by Christopher Gate in 2006 after spinning out of Tudor Capital and currently manages $1bn in AuM, primarily in the flagship Opportunities Fund. There are additional smaller vehicles focused on private transactions or bank subordinated bonds.

Christopher Gate, founder and CIO, has over 25 years’ experience running event-driven strategies and he is supported by a strong team with average 22 years of experience of the partners in the finance industry with deep expertise in the European region.

 

 

Key Persons

Christopher Gate

CIO

Prior to establishing Oceanwood, Christopher spent six years as Portfolio Manager of the event-driven investment strategy at Tudor Capital (UK) LP, investing capital allocated from Tudor’s BVI Global Fund and Tudor’s proprietary trading account. From 1997 to 1999, he was the Head of Equity Proprietary Trading at Barclays Capital, responsible for a team of individuals trading a variety of equity-related strategies. From 1995 to 1997, he was Portfolio Manager of an equity proprietary trading book with Bankers Trust in London, pursuing an event-driven strategy. In 1993, Christopher joined the Equity Derivatives department of Goldman Sachs, specializing in structuring equity derivative transactions. Christopher started his career in 1989, in the Investment Banking Department of Goldman Sachs, initially in New York and later in London, working on a wide variety of real estate transactions, as well as M&A and principal investment transactions.

Christopher holds an HBA (Honours) from the Richard Ivey School of Business Administration at The University of Western Ontario.

Julian Garcia-Woods

Deputy CIO

Julian Garcia Woods is a partner and portfolio manager at Oceanwood. He joined the firm soon after its launch and has been a driving force behind Oceanwood’s early and continued success in European bank balance sheet restructuring trades. Julian has led several industry panel discussions with regulators on bank hybrid capital. Prior to joining Oceanwood, Julian worked at Orn Capital and JO Hambro where he was active in both research and trading of European event situations. During his career, Julian has served in various capacities gaining deep experience and honing his expertise across the capital structure. Julian started his career at Merrill Lynch, participating in the Global Analyst Program. He is a Spanish national and holds a BSc in Economics & Econometrics from the University of Hull and an MSc in Economics from the University of Warwick.


Statistics & Commentary

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 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.

Investment Manager's Commentary

as of

Fund

November saw a continued recovery in risks assets as the Eurostoxx 50 TR (“SX5T”) rose +9.70%, S&P 500 +5.38% and the Hang Seng Index a massive +26.62%. We believe this was driven by a combination of the Fed signalling a slowing in the pace of rate rises and China finally communicating that it would start to reopen its economy. Incredibly, European indices remain the strongest performers year-to-date with the SX5T -5.46%, which contrasts with the S&P 500 -14.94% and the Hang Seng Index still -20.10% after this month’s performance. Credit spreads tightened with the Coco Index[1] still down 16% for the year but up more than 10 points off the lows in early October 2022, which we believe was driven by a combination of a better tone in sovereign bonds but also some spread tightening. From a macro perspective, we have been monitoring money supply (M2) as a liquidity indicator to see when inflation would start to soften and in November, we believe we saw the start of this, causing a shift in market expectations on the speed of interest rate rises[2]. Our view is that rates will stay elevated for some time to come, which will likely continue to affect valuation metrics in all asset classes from venture capital to real estate. We think this will continue to favour value-oriented ideas with catalysts, as well as liquid credit opportunities; companies with attractive valuations with the additional benefit of free cashflow generation. The month was also marked by a continued squeeze in well shorted names with some phenomenal moves in names such as Ocado which rallied over 95% before falling 33%[3]. In event driven land, we believe the biggest landmine came in the form of Rogers Corp which had been subject to a bid from Dupont in the US[4]. The Chinese antitrust regulator refused permission for the deal to go ahead sending the shares down 55%[5]. In our opinion, these examples highlight the dangers of overcrowding in markets and the detrimental effect it can have when everyone runs for the door at the same time.

Against this backdrop, the Oceanwood Opportunities UCITS Strategy[6] finished positive on the month, with a gain of +2.75% net, bringing the year to -3.99% net. We continue to focus on generating alpha through our concentrated, idiosyncratic longs, single stock shorts and credit exposure. Net equity exposure finished the month at 40%, with beta adjusted equity net[7] lower at 24.6%. The largest positive contributors in the Fund this month[8] were Prudential (+186bps), RWE (+76bps), Eutelsat (short +72bps), Phoenix Group Holdings (+68bps) and Glencore (+37bps). The detractors in November were Ithaca Energy (-62bps), Kleppiere (-32bps), Inditex (-26bps), Givaudan (-25bps) and Logitech (-15bps).

Credit exposure in the Fund remains at elevated levels as we continue to hold what we believe are strong AT1 issuers as well as asset backed corporate issuers. Currently credit is around 21% of NAV, of which 17% is Financial credit. Outside of Financials, we have some exposure to specific special situation credits in the energy sector which we believe have some interesting features.

[1] ICE BoFA Contingent Capital Index: -16.11% YTD as of 30 November 2022 and +10.45% since 3 October 2022 to 30 November 2022)
[2] Source: FT, 29 November 2022: Slowing Spanish and German inflation ease pressure on ECB
[3] Source: Bloomberg, November 2022
[4] Source: Rogers Announces Termination of Merger Agreement with DuPont – Rogers Corporation, 2 November 2022[
[5] Source: Bloomberg, November 2022
[6] Alma Platinum IV Oceanwood Opportunities Class I3C-E (ISIN: LU2349505250)
[7] Calculation for Beta Adjusted Equity Net = Sum of Delta Adjusted Exposures * Beta / NAV for all equity positions (using a one-year lookback period). Calculation for Beta = Covariance (Security Return / Variance (Market Return)) for each Security, using SX5T.
[8] The top contributors and top detractors are the issuers that contributed most to the positive and the negative performance of the Alma Platinum IV Oceanwood Opportunities Fund, excluding broad index hedges. The Contribution to Return (“CTR”) calculations are gross of fees and expenses. The CTR for the month is calculated by compounding the Day to Day (“DTD”) returns for each security.

 


Facts & Documents

Facts

Fund Domicile: Luxembourg

Fund Type: UCITS SICAV

Fund Launch: 20 September 2021

Base Currency: EUR

Depositary, Administrator, Transfert Agent: RBC Investor Services Bank S.A.

Dealing: Daily with a 1-day notice

Cut-off time: 4:30 pm CET

Management Company: Alma Capital Investment Management

Investment Manager: Oceanwood Capital Management LLP

Countries where the fund is registered:
Luxembourg

Sustainability-related disclosures:
The Investment Manager has implemented an ESG policy and its investment decision-making process includes a consideration of the sustainability risks, in addition to other fundamental considerations.

Identifiers:

I1C-E
ISIN: LU2349504873   Ticker: ALIOOI1 LX Equity    Launch: 20 Sep 2021

I3C-E
ISIN: LU2349505250   Ticker: ALIOOI3 LX Equity    Launch: 20 Sep 2021

I4C-E
ISIN: LU2349505680   Ticker: ALIOOIE LX Equity    Launch: 31 Dec 2021

I4C-U
ISIN: LU2349505508   Ticker: ALIOOUA LX Equity    Launch: 30 Nov 2021

Documents

KIIDS Other sub-funds and other languages
available upon request