Friday, February 8th, 2013

Sydney, Australia – The Zen Capital Management Global Fund SP fell 1.06% during the month. Of this 0.38% is attributable to trading activities whilst the remainder reflects fund administration and management costs.

For more than half of January technical problems prevented the fund from trading. Managing Director Gregory Carroll said “Since launching the fund on 1 October 2012 our data feed from the NYSE has been terminated on five occasions and left us without data for seven weeks in total. Whilst we do have a backup data source, our review process in January revealed our trading system database had been partially corrupted as a result of the successive terminations”.

Despite the problems the fund has faced, Zen has released an illustration of the significant potential of their strategy. Zen has taken five major markets across different asset classes and, for the purposes of illustration, assumed an equally-weighted portfolio. Using the error-free trading signals generated by Zen’s model the portfolio would have delivered an indicative return of 5.43% for the four months to the end of January 2013.

Mr Carroll said “For interest, we also analysed the signals from our model from 1 January 2012 to 31 December 2012 using just the S&P500 index. This analysis revealed an indicative return (unleveraged) of 26.4% for the 12 months vs a buy-and-hold return of 13.5%”.

Zen stressed that past results are not indicative of future performance.

Since inception the fund has endured an extremely difficult set of circumstances which have clearly impacted performance. Mr Carroll said “as of 6 February all the data problems have been solved”.

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