Reminiscent Capital launches Cayman Fund
Macro hedge fund, Reminiscent Capital (Reminiscent), has launched a Cayman Fund to enable broader access to its Asia Macro Master Strategy (Strategy).
The Strategy, which is employed to construct a highly liquid portfolio centred around rates, FX and equities, was launched in February 2019 and has previously only been available to Australian investors via an Australian Unit Trust.
The strategy finished Q1 2020 up 16.5 per cent before fees, navigating the recent market turmoil successfully and significantly outperforming the HFRI Macro Discretionary Thematic Index YTD and since inception.
The focus of the fund in investing only in liquid products and its policy of no net short option positions has contributed to it exhibiting significant outperformance during months where the S&P500 suffered bad sell-offs. Two such examples being in March 2020 when the Strategy achieved outperformance of 21.73 per cent compared to the S&P500 and in February 2020, outperformance of 14.04 per cent compared to the S&P500.
Reminiscent’s Founder and Chief Investment Officer, David Adams, says he believes an agile, discretionary macro trading strategy is the best way to exploit opportunities across Asia.
“Divergent central bank policies on interest rates and foreign exchange, equity market dispersion, and temporary dislocations caused by the dominance of retail flows are combining to make Asian markets increasingly attractive for Reminiscent, at a time when many hedge fund allocators are underweight the region,” says Adams. “Through this Cayman Fund our objective is to deliver investors superior risk-adjusted returns, across diverse market conditions. This means when markets turn violent, we aim to be the bright spot in our investor’s portfolios.
“After working through various market cycles, our experienced investment team is well aware that during downturns like we have witnessed in the past few months, investors who are in strong positions can take advantage of incredible investment opportunities.”
Before founding Reminiscent, Adams worked in Hong Kong as Portfolio Manager for Brevan Howard and prior to that was Managing Director at Morgan Stanley Australia.
Reminiscent is supported by its minority equity partner, Pinnacle Investment Management Group Limited (PNI:ASX). Pinnacle provides non-investment support functions including a distribution force of 30 people located in London, New York, Sydney, Melbourne and Auckland and industrial grade middle office and infrastructure services.