Alma MidOcean Absolute Return Credit
Overview
Share Class
NAV
Cumulative Performance (%)
Fund Inception 13 January 2016
| Daily | Monthly | Ytd | 1Yr | 3Yr | 5Yr | Incept. | Incept.Date |
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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
The Fund is an open-ended UCITS compliant fund that employs an absolute return long/short approach to investing in liquid performing high-yield bonds.
The Strategy is designed to capitalize on structural and technical inefficiencies in the liquid credit markets, especially on the short-end of the credit curve. MARC 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.
The Investment Manager typically constructs the portfolio with a net long bias and will seek to dynamically adjust the Sub-Fund’s net credit exposure and market exposure to optimize the portfolio’s risk profile given the prevailing market conditions.
Investment Manager
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.
Key Persons
Ryan Dean, Portfolio Manager, Investment Committee
Ryan Dean is a Portfolio Manager of the MidOcean Absolute Credit Fund and for certain customized 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 customized 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 30/11/2022Fund
The UCITS (share class: ALARI1C LX, the “Fund”) returned +1.19% in April, outperforming the BAML US High Yield Index (“the Index”) by approximately 20bps. On a year-to-date
basis, the Fund continues to slightly outperform the Index. During April, US High Yield saw modest gains as March’s volatility continued to subside. Returns for US High Yield in the month slightly outperformed US Investment Grade and slightly underperformed US Leveraged Loans, but returns once again lagged equities, which remain the best performing asset class year-to-date. Across the ratings spectrum, CCCs (+198bps) outperformed BBs (+70bps) and Bs (+102bps) despite the well-anticipated upcoming recession. The Investment Team was pleased with the Fund’s performance during the month as many of the shorter duration long positions that lagged the late-March rally appreciated in price, while our short book detracted modestly from performance. Looking ahead, the Fund remains focused on the short portion of the curve in High Yield, which continues to display an attractive return potential. We remain pleased with the underlying credit quality of the long book and believe the short book provides an appropriate hedge. The Investment Team expects to stick to the core tenants of the strategy regarding strong, bottoms-up credit analysis coupled with active short book management.
Facts & Documents
Facts
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:
Luxembourg, Austria, Germany, France, UK, Italy, 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-G
ISIN: LU2382212004
Ticker: ALARCIG LX
Launch: 31 Aug 2018
I1C-U
ISIN: LU2382212186
Ticker: ALARI1C LX
Launch: 13 Jan 2016
I2C-E
ISIN: LU2382212269
Ticker: ALARCIA LX
Launch: 13 Jan 2016