ARX Offers Offshore Long/Short Class

Feb 1 2007 | 11:42am ET

Rio de Janeiro, Brazil-based ARX Capital Management has launched a Cayman Islands-based long/short class within its ARX Brazil Fund SPC.
  
The fund’s focus is on Brazilian equities, but is not limited to the region. Its strategy includes purchasing preferred shares and selling common shares of the same company, betting that the discount between the two will narrow.

“This is a distortion that happens a lot in Brazil,” said Pedro Sauer, who works on the firm’s trading desk. “We’ll also purchase and sell companies within the same sector to capture the alpha, while guarding against corrections within the sector.”

The fund is currently long in energies, banks and steel companies and is short on pulp and paper, and telecom mobile concerns. Its pair trades involve energies, steel and mining concerns, according to Sauer.

The new fund charges a 1.5% management fee and 20% performance fee, with a $100,000 minimum investment requirement.

ARX is also planning a launch of an equity long-only fund in second half of 2007, according to Sauer.

In other ARX news, the firm’s offshore multi-strategy class launched, which launched in July 2006, was up 11.47% in its first six months of trading. Its gains were made in inflation-linked bonds, equities and pair trades as well as in foreign exchange and commodities, according to Sauer.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.