Thursday, 11 February 2016
Last updated 10 hours ago
Dec 6 2013 | 10:29am ET
Sciens Alternative Investments has added a long/short European credit fund to its managed accounts platform.
Eiffel Credit Opportunities, which will be replicated in a new cell on the Sciens Managed Account Platform, makes discretionary investments in credit instruments of European corporate and financial institutions, using bonds, loans and CDS. The strategy relies on a bottom-up, research-driven approach for credit selection reviewing a wide universe of potential managers to focus on a very select group.
The portfolio will consist of a limited number of high conviction catalyst-driven long and short core positions, plus more opportunistic trading positions. Deployment and exposure are managed dynamically with reference to credit market regime.
The benchmark fund was launched on 1 December 2011 and gained 20.1% in 2012 with a Sharpe ratio of 2.3. Eiffel Credit Opportunities is backed by a pool of large European institutional investors, through a vehicle managed by NewAlpha Asset Management, a leading global seeder.
Said Fabrice Dumonteil, founder and CEO of Eiffel Investment Group, in a statement: “We believe that European markets continue to offer very attractive opportunities in relative value strategies, with the European economic cycle lagging behind the US and European banks’ need to further deleverage.
“The sovereign crisis and the long-lasting European unification process, which should continue to be slow and chaotic, provide a compelling backdrop for our strategy, with shorter economic and market cycles. We are seeing, and anticipate in the coming years, a wealth of opportunities within smaller, second-tier situations which are often misunderstood by the market and not on the radar screen of larger funds. It is exactly these sorts of below-the-radar opportunities, unearthed through in-depth research, that we believe Eiffel Investment Group is perfectly positioned to identify and exploit, as a local manager at the heart of the Eurozone.”
Eiffel Investment Group spun out of the Louis Dreyfus group in mid-2011. The independent firm, owned by its team alongside former Louis Dreyfus group chairman and CEO Jacques Veyrat, manages over €300 million of proprietary and third-party assets in a range of absolute return strategies: long-short credit, long-short sector-focused equity and longer-term credit.
Sciens Capital Management Group is an independent alternative asset manager with approximately US$5.6 billion in assets through its funds of hedge funds, advisory, private equity and real assets platforms.