For each type of investor need, we provide a solution. When we build our upside alpha strategies, our aim is to offer portfolios that will potentially participate as much as possible in up markets, generate value in sideways markets, and mitigate the downside. Whether in investment grade credit or in equities, our teams continuously look for ways to optimize the risk-return potential of the markets they are covering. We offer two main upside alpha approaches:
- Equity risk arbitrage
- Long/short credit.
On the equities side: Extracting value from selected corporate events
Mergers and acquisitions are a common growth strategy for companies – but they also have significant implications for financial markets, particularly for the stock prices of both target and acquiring companies. These events can create temporary market inefficiencies, driven by factors such as investment flows, newsflows, the attractiveness of deals, or the market’s assessment on the probability of deal completion.
Capitalising on stock price discrepancies is possible. It requires in-depth analysis of the key market players and financing conditions. This is what we do: we rely on our extensive team expertise to assess the likelihood of deal completion and identify potential candidates for improved offers. We build long and short positions that may offer attractive value opportunities. Our approach goes beyond traditional buy-and-hold merger arbitrage portfolios: our distinctive expertise was built over more than two decades and we have developed powerful proprietary quantitative tools and a network of external market experts to identify and address transaction risks.
On the credit side: Aiming to optimise the risk-return potential of credit markets
Besides traditional long-only credit portfolios, we also offer long/short credit strategies, available with various levels of target volatility. By building long and short positions across credit markets, sectors, maturities, and ratings, and combining relative value and directional strategies, we aim to unlock a broad spectrum of alternative return opportunities while aiming to optimise portfolios’ risk-adjusted performance.
For our equity strategies: an extensive fundamental analysis of M&A deals is key to assess the risks and opportunitiesspecific to each transaction, as well as their probability of completion.
For our credit strategies: our strong expertise in investment grade and high yield markets, and our rigorous fundamental analysis integrating ESG factors, are central to avoid payment default.
Combining performance engines in the aim to maximise diversification and enhance the quality of portfolio returns.
Figures are worth a thousand words.
- € 1.1 billion Assets under Management
- 0 Payment default in our credit portfolios since inception of the strategy
- 1996 Inception year of our risk arbitrage strategy
Do you want to know more about our alternative funds?
Main risks associated with the strategies
- Risk of capital loss
- Equity risk
- Interest rate risk
- Credit risk
- Emerging market risk
- High yield risk
- Currency risk
- Liquidity risk
- Derivative risk
- Leverage risk
- Counterparty Risk
- Model risk
- Arbitrage risk
- Volatility risk
- Sustainability risk
