Bernheim & Dreyfus CGO UCITS fund returns 11.2 per cent in first year
Bernheim Dreyfus & Co’s Carmel Global Opportunities (CGO) UCITS Fund has generated a 11.2 per cent net return in the 12 months since its launch.
This has been achieved with a volatility of 2.3 per cent giving a Sharpe Ratio of 5, which places the fund in the top-tier of risk/adjusted performance rankings for the sector. The fund has delivered 11 positive months out of 12 with a worst performance of -0.16 per cent.
The CGO UCITS Fund is an extension of the audited Carmel Global Opportunities managed account (KPMG), which generated +18 per cent net in 2012 and +11 per cent in 2013, recording only four negative months (87 per cent positive).
The fund was launched with USD60 million in June 2013 and is now approaching assets under management of USD100m. It is subject to a series of due diligence processes from potential investors creating the likelihood of further significant growth in assets over the next few months.
The CGO UCITS Fund is designed to deliver steady long-term capital appreciation through diversification of investment style, alpha source and time horizon. The fund deploys capital in an actively managed core fixed income allocation and a more dynamic pocket increasing market exposure during risk-on environments. The tactical trading strategy is targeted capturing all available opportunities depending on market conditions, combining strong portfolio construction and risk management skills.
The CGO UCITS Fund is currently focused on the long side of two asset classes:
- European credit. Bernheim, Dreyfus believes prospects for the European credit markets remain very favourable, with improving credit fundamentals in high yield and financials, low default rates and efficient access to capital markets. This market continues to offer very attractive catalyst-driven investment opportunities.
- US equities. The fund is positioned to benefit in the coming months from (i) the accelerating growth of the US economy (ii) the current wave of M&A and (iii) the growing gap between companies that are in a position to generate sustainable growth by capitalizing on their past investments and firms that remain vulnerable to pricing dynamics.
Amit Shabi, co-founder of Bernheim, Dreyfus & Co, says: “We are extremely proud of having delivered robust risk/adjusted returns for Carmel Global Opportunities. We are seeing a lot of investment situations across the capital structure and are ready to capture all available opportunities. We therefore remain optimistic and we believe that our strategy will keep performing as well in the futures as it did over the past.”
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