Alma MidOcean Absolute Return Credit
Cumulative Performance (%)
Fund Inception 13 January 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
Alma Platinum MidOcean Absolute Return Credit is an open-ended UCITS compliant fund that seeks capital appreciation by generating stable, absolute returns with a relatively high Sharpe ratio and low drawdowns over the long term. The Investment Manager of the Fund is MidOcean Credit Fund Management, L.P.
To achieve this objective, the Investment Manager aims to follow an absolute return credit long/short trading strategy, the Fund intends to follow the MidOcean Absolute Return Credit strategy. The Strategy employs a long/short corporate credit approach focusing on US companies: the Fund primarily invests in liquid short-dated corporate bonds, with a core focus on callable securities and credit default swaps, the combination of relative value positions with outright long or short credit holdings will typically produce a low duration and diversified portfolio.
The Strategy utilises fundamental analysis to seek alpha opportunities primarily in short duration callable bonds,particularly in the ‘crossover seam’ between high yield and investment grade. Portfolio construction is performed with strict constraints on sector and industry exposure and the portfolio seeks to be as close to credit risk and market risk neutrality as possible. The gross leverage is not expected to exceed 750% of the value of the Fund.
Established in 2003, MidOcean Partners is a New York-based alternative asset manager 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.
Head of Absolute Return Credit, Senior Portfolio Manager, Managing Director
Bryan serves as the Head of Absolute Return Credit and is the Senior Portfolio Manager of the MidOcean Absolute Return Credit Fund. In addition, Bryan is a Senior Portfolio Manager for certain liquid products. He is also a member of the Firm’s Investment Committee and Risk Committee.
Bryan has over 25 years of investment experience and has actively managed several multi-billion dollar corporate credit portfolios. He has broad product experience and has employed various investment strategies, including extensive experience executing long/short credit strategies. Prior to joining MidOcean Credit Partners in 2010, Mr. Dunn was a Senior Portfolio Manager at Primus Asset Management where he launched and managed the Primus Absolute Return Credit Fund. Prior to working at Primus, Mr. Dunn headed the Credit Portfolio Management Division at Bank of Tokyo-Mitsubishi where he was responsible for the Bank’s North American proprietary credit investment portfolio. Prior to that, Mr. Dunn founded Dresdner Bank’s credit asset management team and oversaw its investment portfolio. His additional experience includes portfolio management roles in CIBC’s Loan Portfolio Management Group and JPMorgan’s Cash Management Group.
Bryann holds a Bachelor in Economics from Ithaca College and a M.B.A from New York University Stern School of Business
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
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Investment Manager's Commentaryas of 31/08/2020
The UCITS (share class: DMA1CU, the “Fund”) outperformed the High Yield Index (“HY Index”, BBG: “H0A0”) by ~25bps in September, down –0.76% versus the -1.04% loss posted by the HY Index. Notably, the Fund is up +3.75% for the year, while the HY Index has dipped back into negative territory (-0.30%) at quarter-end. Throughout the first half of the month, we continued our opportunistic selling efforts in a rising market (similar to July and August). As the market softened in the latter half of the month, we focused on portfolio optimization and strategic trading activity. Best characterized as tactical rotation, we executed relative value re-positioning trades by selling richly priced assets, while simultaneously purchasing negatively impacted single name credits. In anticipation of potential downside volatility (largely stemming from the U.S. election and uncertainty surrounding the reemergence of the COVID-19 virus), we meaningfully increased our hedge portfolio in order to enhance our defensive posture as we enter the fourth quarter.
Facts & Documents
Fund Domicile: Luxembourg
Fund Type: UCITS SICAV
Fund Launch: 13 January 2016
Base Currency: USD
Depositary, Administrator, Transfert Agent: RBC 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:
Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Spain, Singapore, Switzerland, United Kingdom
ISIN: LU1263149731 Ticker: DMAI1CE LX Launch: 13 Jan 2016
ISIN: LU1862484901 Ticker: DMAI1CG LX Launch: 31 Aug 2018
ISIN: LU1263149814 Ticker: DMAI1CU LX Launch: 13 Jan 2016
ISIN: LU1263150077 Ticker: DMAI2CE LX Launch: 13 Jan 2016
ISIN: LU1263149905 Ticker: DMAI3CE LX Launch: 17 Aug 2016
ISIN: LU1263149657 Ticker: DMAI3DU LX Launch: 17 Aug 2016
ISIN: LU1650471847 Ticker: DMAI5DU LX Launch: 25 Oct 2017