Arvernus Capital (CH) Europe Event Driven Fund
Emphasis on capital preservation and defensive strategies
- Focus on announced deals
- Diversification across a variety of deal structures
- Portfolio exposure limits and position monitoring
- Price objective and stop loss
Defensive posture when conditions warrant
- Increase cash
- Hedging in order to reduce risk
- Incremental building of positions
Research and analysis
- Direct communication with companies, authorities and supervisory bodies
- Use of network of contract and information sources build over years
- Careful and continuous "risk/reward" analysis
- Financial-, legal- and regulatory analysis
- Ongoing review of scenarios
- Fully financed
- Industrial and strategic reason of takeover vs. pure financial engagements
- Friendly mergers
- Low regulatory conflicts expected
Mgt. of main Risks in Alternative Investments
Mostly watched single risk, can be x- times of NAV.
Our prospectus limits the loan facility to 50% and investments may be subject to leverage up to 300% (max. derivatives exposure of 150% )of NAV.
A short sale involves a risk of a theoretically unlimited increase in the market price of the underlying.
Short sales via security borrowing, the sum of the risk exposure "short" (after netting) of all investments must not exceed 75% of NAV.
Often unregulated and domiciled offshore
Authorised, domiciled and registered in Switzerland, regulated and under supervision by the Swiss Financial Market Authority FINMA.
Fairly illiquid with long redemption and notice periods, soft lock-up and penalty.
Monthly liquidity, 10 days notice period for redemptions, no soft lock-up and no penalty.
Many strategies result in one way or the other into direct market exposure.
Direct market exposure is less significant by our main strategy.
Certain securities may be or may become illiquid and difficult to price accurately or become restricted and virtually impossible to trade.
A certain amount of our assets may be restricted or blocked for trading during a corporate action period.
Investments in a limited number of underlying assets may end up in a concentration and may perform differently than a well diversified portfolio.
Our prospectus regulates various maximum exposures, i.e. asset classes, regional aspects, market capitalizations, single positions- and counterparty risks.
Investments in emerging markets are normally more volatile, as these markets do not offer the same level of organization, transparency and liquidity as their counterparts in more developed countries.
Our internal investment guidelines restrict engagements in emerging markets to a max. of 40% of NAV.
Comparison of Risks