`

Overview

Alma MidOcean Absolute Return Credit employs an absolute return long/short approach to investing in liquid high-yield bonds.
The fund’s management is delegated to MidOcean Partners.

Share Class

NAV

Cumulative Performance (%)

Fund Inception 13 January 2016

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

Fund Strategy

The Strategy is designed to capitalise on structural and technical inefficiencies in the liquid credit markets, especially on the short-end of the credit curve. MidOcean deploys a systematic and repeatable credit investing process in low duration credit and relative value trading, paired with tactical hedging, which in combination produce high-yield-like returns with less volatility and more downside protection.

MidOcean typically constructs the portfolio with a net long bias and will seek to dynamically adjust the Fund’s net credit exposure and market exposure to optimise the portfolio’s risk profile given the prevailing market conditions.


Investment Manager

MidOcean Partners is a New York-based alternative asset manager established in 2003 that specializes in middle market private equity and alternative credit investments. MidOcean Credit started in 2009 and manages over $8 billion across a series of alternative credit strategies, collateralized loan obligations (“CLOs”), and customized separately managed accounts.


Key Persons

Ryan Dean
Portfolio Manager, Investment Committee
Ryan Dean is a Portfolio Manager of the MidOcean Absolute Credit Fund and for certain customised credit strategies. Mr. Dean is responsible for daily oversight of the portfolio and actively works with the research team to identify and evaluate absolute return and total return investment opportunities in performing credit situations. He is also a member of the Firm’s Investment Committee. He has covered several industries during his career including Automotive, Aerospace & Defense, Business Services, and Industrials. Mr. Dean has 13 years of experience in the financial services industry predominantly in fixed income credit research and trading. Prior to joining MidOcean Credit Partners in 2013, he was a research analyst in the High Yield Credit Research group at J.P. Morgan where he covered the Industrials and Services sectors. He also was a member of a research team that received #1 for the Services sector and #2 for the Industrials sector by Institutional Investor’s annual All-American High Yield Fixed-Income Research rankings. Mr. Dean received a B.S. in Finance from Lehigh University.

Michael Levitin,
Principal, Portfolio Manager
Michael Levitin is a Portfolio Manager of the MidOcean Absolute Credit Fund and for certain customised credit strategies. Michael is responsible for daily oversight of the portfolio and actively works with the research team to identify and evaluate absolute return and total return investment opportunities in performing credit situations. Prior to joining the firm in 2015, Mr. Levitin was an Associate in the investment bank at Bank of America Merrill Lynch, specializing in originating high yield bonds and loans. Previously, he was a Senior Analyst with MetLife’s distressed investments group.


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 30/04/2024

Market Review and Outlook

Risk assets came under pressure in April as geopolitical tensions rose following Iran’s attack on Israel, inflation remained potentially sticky, and economic growth started to be questioned. Despite these factors, credit has remained remarkably resilient, as earnings have held steady, and yields have remained attractive for investors. With rates serving as the primary headwind, the S&P 500, Russell 2000, Nasdaq, Treasuries, US Investment Grade (“IG”) and US High Yield (“HY”) all produced negative returns in the month, making April the worst month of the year thus far for each asset. US Leveraged Loans (“LL”) continued their steady march higher, producing another month of positive return. After a brief reprieve in March, HY once again saw negative price return in the month (-1.54% in April), making it the third month of the year to see this kind of detraction. Bs were the strongest cohort, returning -0.86% in the month while BBs and CCCs returned -0.97% and -1.60%, respectively. BBBs were hit particularly hard by rates, returning -2.24% in the month. Despite various headwinds, credit spreads widened by only 3bps/month in HY and are still 16bps tighter when compared to the start of the year. Yield to worst for HY now sits at 8.20% versus 7.75% in March.

Fund

The Alma Platinum IV MidOcean ARC (the “Fund”) returned 0.02% in April, outperforming the BAML US High Yield Index, which returned -1.00% during the month.

Fund activity during the month was muted versus prior months as heightened volatility coupled with spreads remaining tight did not produce the types of buying opportunities one would expect to see in a month where HY is down. The investment team focused on being better sellers of positions that had hit their fair value, allowed certain positions to get called, marginally added to certain of our favorite longs, and as always, looked to strategically rotate the Fund’s short book.

Looking ahead, despite the market’s resistance, we continue to remain cautious around reaching for generic risk and believe patience to be a significant virtue in this environment as we look to uncover off-market and short duration opportunities.


Facts & Documents

Facts

Fund Domicile: Luxembourg

Fund Type: UCITS SICAV

Fund Launch: 13 January 2016

Base Currency: USD

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

Dealing: Weekly with a 3-day notice

Cut-off time: 3 pm CET

Management Company: Alma Capital Investment Management

Countries where the fund is registered:
Luxembourg, Austria, Germany, France, UK, Italy, Switzerland, Ireland

Sustainability-related disclosures:
Environmental, social and governance (“ESG”) criteria have been integrated in the investment decision-making process. An ESG analysis is conducted for all issuers and a rating is given to each environmental, social or governance consideration relevant to the issuer. This is done prior to any investment, but also on an ongoing basis. Such analysis and rating will be integrated in the investment decision-making process. No index has been designated as a reference benchmark for this sub-fund. Further information can be found in the prospectus of the sub-fund. The extent to which the above-mentioned characteristics are met will be included in the annual report of the fund, as from the first report issued after 1 January 2022.

Identifiers:

I1C-U
ISIN: LU2382212186   Ticker: ALARI1C LX    Launch: 13 Jan 2016

I2C-E
ISIN: LU2382212269   Ticker: ALARCIA LX    Launch: 13 Jan 2016

Documents

Subscribe to the Fund Monthly Newsletter
PROSPECTUS
  1. Platinum Prospectus
KID Other sub-funds and other languages
available upon request