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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

After a tumultuous end to the first half of 2022, July offered some respite with the Euro Stoxx 50 TR[1] gaining +7.44% over the month[2]. We think the extreme negative sentiment lifted somewhat as central bank rhetoric was interpreted as dovish, the ECB announced a comprehensive initial framework for the region’s anti-fragmentation tool[3] and a relatively robust earnings season indicated investor outlook had perhaps become too pessimistic. In our opinion, questions surrounding the persistence of inflation and the corresponding pace and severity of how central banks will respond continue to drive global markets. However, in Europe we have to contend with additional uncertainties surrounding Russian gas supply and the prospects of a cold winter. It appears increasingly likely that Europe will have to navigate winter with lower gas reserves, which we think will have meaningful implications for industrial and consumer behaviour.

The Opportunities Strategy[4] performed solidly in the environment, generating a gain of +4.08% net for July, leaving it down -8.36% YTD as compared to the index which is still down -11.84%. Fund performance was mainly driven by a number of our high-conviction names we held throughout the volatility, as well as those that we added to on weakness, both equity and credit. Our investment process and philosophy is to perform in-depth analysis on companies going through change through a combination of top-down research, bottom-up fundamental analysis and determining the probabilistic outcomes for transformational catalysts. During this year, these markets have been testing, but we continue to focus on rigorous and disciplined scrutiny of our investments. We believe sound decision making is key to compounding capital over the long-term, and we believe that our process executed over the last 16 years continues to serve us well.

On the event equity side, the top contributors[5] for the month were DSV (+100bps), Ferguson (+92bps), Electricite de France (+84bps), Phoenix Group (+82bps) and RWE (+81bps). June’s decision to allocate 14% to Bank Capital, specifically Additional Tier 1 securities (AT1s) during the height of its dislocation, generated a gain of +84bps for the month. In terms of the negative contributors, the larger losses came from hedges in various indices. From a stock specific perspective, the largest stock specific losses were Bankinter (-89bps), GlaxoSmithKline (-40bps), Caixabank (-24bps), Faurecia (-22bps) and Entain (-20bps). It is worth noting that we have taken the opportunity to add to alpha shorts in a number of names as the market rallied.

Despite the macro noise and seasonality, we still see a very healthy pipeline of corporate activity as companies see the need to adapt to a fast-changing environment. This gives us comfort that the opportunity set is in our opinion there to be taken advantage of and, with the recent bouts of volatility, offers some extremely interesting risk/reward across both event equity and credit names.

[1] Euro Stoxx 50 Total Return
[2] July 2022
[3] The Transmission Protection Instrument (europa.eu)
[4] Alma Platinum IV Oceanwood Opportunities Class I3C-E (ISIN: LU2349505250)
[5] 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