Eiffel Credit Opportunities, a long-short sector focused European credit fund, will be replicated in a new cell on the Sciens Managed Account Platform.
Eiffel Credit Opportunities is a long-short European credit fund which makes discretionary investments in credit instruments of European corporate and financial institutions, using bonds, loans and CDS.
The strategy, which will be replicated in a cell on the Sciens platform, 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 strategy’s 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 per cent 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.
Fabrice Dumonteil, founder and chief executive of Eiffel Investment Group, says: “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.”
Dr Stavros Siokos, Sciens chief executive, says: “Eiffel Credit Opportunities strategy stands out as there are not so many European credit strategies, even fewer with a classic research-driven approach, and it is the first long-short European credit strategy on our platform.
“We are delighted to welcome Eiffel Investment Group and to bring our managed account platform investors even greater diversity of choice.”