Wednesday, January 9th, 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 fell 1.44% during the month of November. Of this 0.77% is attributable to trading activities whilst the remainder reflects fund administration and management costs. Daily Volatility for the fund was 25% of that recorded by the S&P500.

It its November 2011 Investment Perspectives, Morgan Stanley revealed the average “Hedge Fund” has an almost 90% correlation to the S&P500. As at 30 December the S&P500 had fallen 1.29% on fears surrounding the US “Fiscal Cliff”. Zen believes the average hedge fund would have recorded a loss of a similar amount. Managing Director, Gregory Carroll said “Those funds which had shorted as the Fiscal Cliff deadline approach would have been sitting on handsome profits as at 30 December. The Zen Capital Management Global Fund was short in late December”.

Despite the Fiscal Cliff deadline being missed, US equities rallied over 2% on 31 December and funds which had shorted (including Zen) were stopped out of their previously profitable positions. Mr Carroll said “The previously underperforming funds were very lucky to see their losses turn into a profit on the last trading day of the year. Unsurprisingly, the HFRX Equity Hedge Index recorded a 0.44% gain for the month, just behind the 0.78% gain recorded by the S&P500”.

A distinguishing feature of Zen Capital Management is its high level of transparency. Mr Carroll said “We sincerely thank those of you who have taken the time to comment on our high level of transparency. Clearly it is rare for a fund manager to discuss, in intimate detail, the critical thinking which sits behind the management of a fund”.

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