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

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note