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 $1.9bn 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$1.9bn 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 28/08/2020
Market Review and Outlook
Global markets rose in March buoyed by strong economic data and continued assurances of accommodative monetary policy by central banks. Investors rotated out of growth stocks into value, with large cap blue chips in the US, Europe, and Japan outperforming small cap and emerging markets. Consumer Staples and Industrials were the top sectors, while Technology and Consumer Discretionary stocks lagged. Interest rates rose in the US on inflationary concerns, leading to losses in Treasuries and US investment grade debt. The rest of the world and high yield posted positive returns.
Convertibles underperformed the broader markets as the rotation out of growth names, declining volatility, and the impact of massive primary supply on valuations all served as headwinds. Convertible issuance hit a new record with $26.9 Bln coming in March. The majority were in US growth names on increasingly aggressive terms. This ultimately led to a push back by investors and a modest improvement in pricing by month end.
The Fund declined modestly in March, reflecting underlying stock weakness in Asia ex-Japan and Technology. All other regions advanced with Cyclical Consumer Goods and Industrials the top contributors. The Fund substantially outperformed the Benchmark, driven by superior security selection in the Americas and across Technology names. Market movements and secondary market cheapening provided ample opportunities to rebalance and improve the structure of the Fund. Holdings that became too bond-like or equity-sensitive were sold and replaced with more attractive balanced alternatives.
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
The information related to the integration of sustainability risks and to the potential adverse sustainability impacts at the sub-fund level can be found in the prospectus of the Fund.
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