The fund will invest in all Banks capital structure with the managers total flexibility and discretion on asset allocation. The fund will rotate asset class within the capital structure depending on cycle view. Focus: Primarily invested European banks and insurance companies. Instruments: Equity, AT1 and subordinated debt mainly. Limit AT1s at 20% of Funds AUM. Intentions: Seek anti-consensus equity ideas, capture attractive opportunities in sub-debt -mainly in the mid cap space- and gain a sensible exposure to AT1s (thorough analysis of prospectus and issuers).
The Fund seeks to invest in the European financial sector, in order to obtain positive performance throughout the economic cycle. The objective is to give the investor the possibility to invest in all of the banks capital structure and give exposure to the investor in the complex insurance companies; all this with the aim to provide all asset classes and benefit from them- equity, fixed-income or both – depending on the business cycle and trying to anticipate changes in the cycle to obtain better performance.
The portfolio will be invested in a concentrated number of banks and insurance companies, selected by the Manager with a very comprehensive analysis of all its capital structure. The objective is to generate long term alpha, and maintain and preserve the capital by making use of the flexibility of the Fund with the investment of debt senior if the sector encounters serious trouble or the manager considers excessive risk. Take short positions only when there is a high conviction that the contribution of these to be positive in the short term.