PVE Capital – Best Multi-Strategy Manager
PVE Capital is a European-based hedge fund manager and adviser established in June 2009 by Gennaro Pucci, Joe Vittoria and Christian Evans. Launched in October 2009, the Matrix PVE Global Credit Fund uses a macro approach to trading credit markets.
Founding partner and chief investment officer Pucci has a successful five-year track record managing credit funds and is the fund’s portfolio manager. Key service providers include Credit Suisse as broker, Quintillion as administrator and Daiwa Europe Securities as custodian.
The Dublin-domiciled fund, which employs a standard 2 and 20 fee structure, returned 21.95 per cent in 2010 and has seen its assets grow to EUR150m. Unsurprisingly, given the firm’s views on the eurozone sovereign debt crisis, the fund delivered exceptional returns while exhibiting a strong negative correlation to other markets and asset classes, including -0.75 to the FTSE 100.
Commenting on winning the Hedgeweek award, Pucci says: “We are honoured to be voted by our peers and counterparties as the recipient of this award during our first full year as a fund, and we look forward to building on this momentum as we continue to grow as a firm and deliver for our investors through these historic times.”
PVE Capital’s investment team uses a top-down investment approach to identify key macro themes and sectoral plays for the Global Credit Fund. Fundamental bottom-up credit analysis is then used to assess individual companies, combined with technical analysis to find the best way to express these fundamental views based on factors such as price, liquidity and transparency.
The fund has an experienced team of traders across the spectrum of credit products including macro credit, index relative value, single name relative value and secured credit, trading asset classes including sovereign bonds, credit default swaps, CDS indices and cash bonds as well as collateralised debt obligations, collateralised loan obligations and mortgage-backed securities.
The fund’s holding period for most instruments is between one and three weeks, with a secured credit bucket that takes a six- to 18-month holding period. The portfolio’s construction is 75 per cent macro credit and index and single name relative value, and 25 per cent secured credit. Monthly liquidity is provided to investors. All trading positions in the fund are constructed within clear risk parameters that are visible by risk management in real time through a top-tier proprietary system.
Regarding the eurozone’s volatile market conditions last year as Greece was brought to its knees by debt, Pucci says that PVE Capital’s consistent view since launching the fund has been that a sovereign crisis would follow in the aftermath of a financial crisis, and that the fund was positioned accordingly.
“We were surprised a few times by the speed and magnitude with which political and regulatory noise impacted the markets, but we found a number of ways to express our views while minimising exposure to this volatility by identifying instruments and trades exhibiting asymmetric pay-off profiles,” he says.
Before setting up PVE Capital, Pucci was a partner at Credaris, which he joined in 2005 as head of trading and where he was the sole portfolio manager for the firm’s USD140m Credit Fund.
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