Thursday, March 14th, 2013

A unique Global Macro Hedge Fund designed to deliver attractive returns, excellent liquidity, and have a low correlation with the major asset classes.

Sydney, Australia – The Zen Capital Management Global Fund SP marginally outperformed its peers in February. The HFRI Macro Systematic Diversified Index recorded a fall of 1.11% for the month whilst the fund lost 1.08% (gross).

Since launch on 1 October 2012 the fund has been plagued with data-related problems. All such problems were resolved as of 6 February. However, these problems impacted performance over the month.

Managing Director Gregory Carroll said “Having commenced building our portfolio from a zero base on 6 February we only had a short opportunity to accumulate a profit before the markets become volatile. As such, it is unsurprising that we recorded a small loss for the month. However, we are very pleased with the magnitude of our loss compared with those recorded by our peers who enjoyed both orderly markets from 1 February and the benefit of commencing the month with an established portfolio”.

From a markets perspective the month was split into two halves. Equity markets rose steadily for 12 trading days followed by 7 trading days of extreme volatility. Similar patterns of volatility were observed in many instruments including almost all equity markets; many commodities, several currencies; and many bonds.

The closely-watched CBOE VIX (a measure of risk aversion) surged a massive 54% over 5 trading days during the second half of February. Moves of this magnitude have historically been associated with large corrections in the S&P500 thus it is surprising the S&P500 only fell 3% from high to low through February.

Mr Carroll said “Clearly we have considerable work to do in demonstrating to investors the true potential of our strategy. We entered March with a complete portfolio and are very pleased with the results to date. With March being the first full month of unencumbered trading we believe the results we deliver will be a true reflection of the potential of our strategy”.

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