Independent wealth management firm Amram Capital has launched Princes Park Capital, a high-yield fixed income long/short portfolio with hedge fund veteran Georges Gedeon as its chief investment officer.
Having started his career in investment banking in 1989 with Merrill Lynch and then Goldman Sachs, Gedeon switched to asset management in 2002 – first as a portfolio manager at GLG Partners, before going on to launch his own funds – Mereor Investment Management & Advisory, Millennium Capital and Antler Capital Partners.
His new charge – which carries a 1.5% management fee and a 20% performance fee – will operate a global mandate with the objective of generating “high single-digit absolute returns per annum while minimising volatility”.
At the same time, the fund has been designed to focus on capital preservation through “an unconstrained, high-conviction strategy that is geographically agnostic”, with a portfolio split across America (30%), Europe (30%), Asia (20%) and Central and Eastern Europe, the Middle East and Africa (10%).
‘Fascinating point’ in the cycle
According to BMO Global Asset Management multi-manager team member Kelly Prior, bond markets now stand at a “fascinating point” in the credit cycle and flexibility is likely to be “a key factor for success” in investing from this point.
“Given the more challenging economic environment we may face in the coming years,” she continued, “it is interesting to see investors such as these launching a mandate that looks well set to take advantage of dislocations that are likely to come with any volatility in the credit market.”
Gedeon said Princes Park Capital would consider “the full range of credit opportunities – long and short – across the capital structure”, adding: “By exploiting market inefficiencies through in-depth credit research, it will make use of various investment strategies, which aim to amplify gains in rising markets, and protect capital during times of market stress.”
‘Better risk-adjusted returns’
“Providing financial security to our clients is of paramount importance to us, especially at a time when the current political turbulence, looming Brexit and trade wars are creating an uncertain environment for investors,” he continued.
“Asset markets now reflect a global economy where successive periods of credit creation have led to an environment where private debt now stands at many multiples of GDP. Low nominal interest rates and quantitative easing are needed to make this debt load sustainable. In this environment fixed income markets can create better risk-adjusted returns from an unconstrained credit strategy that combines top-down and bottom-up analysis with extensive market-trading experience.”
