Hydra Capital Management is launching a Global Macro Emerging Market Debt fund investing in external and local market debt and currency instruments of emerging market countries.
Colm McDonagh, former Head of Global Emerging Market Debt at Aberdeen Asset Management, will manage the fund using an investment process developed over 10 years experience of the asset class involving credit/country analysis, security selection, global macro/liquidity overlay, and catalyst driven investment execution.
Previously McDonagh managed several total return global emerging market debt return funds generating an outstanding track record. In 2004 he was winner of the Global Emerging Market Fixed Income category of the Morningstar Fund Manager of the Year Awards, and he is listed in Nelson's Marketplace's World's Best Money Managers over 1yr, 3yr and 5yrs as at the end of 2005.
'We are delighted to add a directional Global Emerging Market Debt fund that compliments the existing Arbitrage strategy,' says Jim Summers, Hydra Capital chairman and CEO. 'In adding this fund we are increasing the types of market exposure Hydra Capital Management offers to investors in a growing asset class. Colm has an outstanding track record, and his investment approach will contribute significantly to the expertise in Global Emerging Fixed Income provided by the firm.'
Background note: Hydra Capital Management Ltd, a UK registered company authorised and regulated by the FSA, is wholly owned by the management and acts as investment advisor to the Lodsworth Arbitrage Fund Ltd.
The Lodsworth Arbitrage Fund was established in December 2003 with an investment mandate to exploit credit-neutral inefficiencies within global sovereign emerging fixed income and derivative markets. By utilizing liquid long/short paired trades within the same country, the Fund has only had 3 down months since inception and has accrued net annual returns of 10.55% with a rolling 12 month Sharpe Ratio of 3.09.