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

Delayed Flash Crash Arrest Highlights Difficulties Detecting Fraud

Apr 23 2015 | 7:19am ET

The five years it took regulators to bring high-profile charges against a UK trader...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note