Javelin Capital's Maiden Hedge Fund Ends First Year With Gain

Nov 1 2011 | 1:01pm ET

Javelin Capital’s Global Equity Strategies Fund marked its one year anniversary on September 30th by doing something not all hedge funds have done YTD—posting gains.

The market neutral fund with significant emerging markets exposure returned 3% in September alone, 1.92% for Q3 2011 and 0.55% YTD. Its positive 12-month return compares favourably to the 18.14% loss for the MSCI Emerging Markets Index.

Said Javelin Capital CIO (and Goldman Sachs alumnus) Victor Pina in a statement: “Through the use of different innovative investment approaches, we were able to produce a mildly positive return in our first year even under extreme market conditions. Our risk management techniques, which have been developed and refined through years of investing in booms and crashes in emerging markets, have proved resilient. The fund has successfully preserved capital, whilst at the same time maintaining volatility, especially its downside volatility, well within target range.”

Roughly half of the US$31.7 million fund (which launched with seed capital of US$31 million) is deployed in the tactical beta strategy, according to a company statement, a trend-following approach that aims to profit from both rising and falling markets.

Javelin says the remainder of the fund’s assets are fully hedged and held in relative value approaches, including a longer-term fundamental strategy in addition to trading related strategies designed to capture short term price dislocations. 

Javelin Capital is backed by Majedie Investments, an investment trust with a history dating back to 1910 and with gross assets of $210 million (as of 30 September 2011). Majedie Investments provides operational capital and seed money to Javelin Capital.

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