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 equity markets experienced their first meaningful decline since March as stimulus talks stalled in the US and rising COVID cases spurred concerns regarding the impact of renewed lockdown measures. US Technology names were the worst performers with the NASDAQ tumbling 10% in a four-day period. Interest rates declined with the US Federal Reserve agreeing to keep short term rates at zero for several years. Credit spreads widened, particularly in high yield.
Convertibles posted negative returns. The US and Asia were the worst performing regions, while Japanese and European convertibles were more defensive. Technology, Energy, and Retail names experienced the most significant declines. An active new issue calendar continued to provide a diversified supply of balanced paper. There were $11Bln in new deals globally, including a 2.4 Bln EUR jumbo deal from EDF. Year-to-date issuance topped $125 Bln and redemptions remain modest.
The Fund declined in September driven by weakness in the US and Asia, while European and Japanese names were largely unchanged. Technology, Energy and Basic Materials sectors were the main detractors, while Consumer Non-Cyclicals and Real Estate names advanced modestly. The Fund underperformed the Benchmark, primarily a result of underperformance in the Americas. Large market moves and a steady supply of new paper provided abundant opportunities to reposition and optimize the risk/reward properties of the Fund. We exited positions in Healthcare that had become too bond like and Technology names that had moved too far up the curve. Proceeds were reinvested in more balanced profiles in Asia, Europe, and the US and included several new deals.
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
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