Alma Oceanwood Opportunities
Cumulative Performance (%)
Fund Inception 20 September 2021
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 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).
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.
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 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
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
April saw markets continue their volatile path as the Ukraine conflict did not come to the quick end many had hoped. The ongoing debate around European Gas supply only exacerbated recent trends pushing commodities to climb higher. Interest rates as well as inflation expectations also edged higher with the US 10 year close to 3% at the end of the month. European markets’ bias to Value resulted in significant outperformance compared to US indices, with the Eurostoxx 50 TR down -2.08% on the month versus the S&P 500 -8.80% and Nasdaq -13.37%. Inflationary pressures remain at the forefront of markets’ concerns as supply chains suffer from the ongoing conflict as well as China’s zero-Covid lockdowns. With rates moving up, the knock-on effect on liquidity has had wide ranging consequences for valuations across markets and will see factors remain volatile.
The UCTS Strategy showed resilience and adaptability, finishing the month -116bps net as the market gyrated in a 5% range. For the year, the Fund is -4.69% net, versus the market down -10.85%, marking one of the most turbulent four months the market has witnessed in recent years as participants grappled with the long-held regime of low rates moving to higher yields. During April, the long book lost -183 bps whilst the short book made +101bps.
Key contributors to the fund’s return for the month were Sampo (+40bps), our long-term holding which continues to buyback shares and sell down its stake in Nordea, the high quality Nordic bank. Getlink (+40 bps) rose on bid speculation after Atlantia received a bid from the Benetton family in conjunction with Blackstone, Var Energi (+31bps), a busted IPO, performed strongly as investors recognised the strong set of assets they have, BankInter (+29bps) had strong earnings results as it continues its buyback program, and Atlantia (+27bps) as previously mentioned refocused investors on concession type assets with pricing power. On the detractors, Prudential (-104bps) suffered from the HK/China lockdowns (and now trades at a significant discount to its closest peer, AIA, listed in HK), Infineon (-52bps) sold off in unison with technology names, DSV (-50bps) de-rated despite a potential acquisition being on the horizon, Porsche (-46bps) sold off after strong performance in March and Glencore (-20bps) saw some minor volatility after a strong run.
Overall, we are seeing a continual wave of announcements from corporates looking to adapt to this changing operational environment, and so we look to remain nimble whilst keep some semblance of a balance across factors given elevated levels of volatility. We believe markets are pricing in significant rate rises globally, and that positioning has moved to some extreme levels across a number of sectors and industries. We continue to use this time to identify compelling idiosyncratic catalyst-driven opportunities where investors have overly discounted newsflow, as well as re-underwriting the current book and updating our conviction and probability analysis on their outlooks. We believe this is one of the most exciting entry points for the Strategy and have been pleased to see both new and existing investors add to the strategy over the last few months.
Facts & Documents
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:
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.
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