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Buchet joins Finisterre Capital as CIO for Total Return Strategies

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Finisterre Capital, an Emerging Market Macro and Credit specialist, is to launch Finisterre Emerging Market Debt Total Return Strategy with Damien Buchet (pictured), previously Global Head of Emerging Market Fixed Income at AXA Investment Managers, joining the firm as CIO for Total Return Strategies.

Buchet is joined by Christopher Watson, who has been at Finisterre since 2007 as Head of Credit Research and a Credit Portfolio Manager and today runs the firm’s USD720m in long-biased strategies.  Buchet’s top-down approach will complement Watson’s fundamental, research driven style.
The strategy will benefit from being operated within an unconstrained and entrepreneurial hedge fund environment and operated using a well-tested total return portfolio construction process, developed by Buchet over his successful career. The strategy will target returns of 3% to 7% per year over a cycle. The strategy takes a holistic approach aimed at optimising the yield-liquidity-volatility profile of its portfolio across the market cMarkycle.
Buchet says, ‘Emerging markets need to develop a new business model away from a reliance on Chinese demand, industrial relocation from developed markets and an overreliance on commodities. They are launching a new wave of reforms mostly targeting competiveness issues. But, the pace and extent of these reforms will vary country to country, sector to sector, industry to industry and this will create a fertile environment for relative value and tactical market calls. We believe that the total return strategy we have developed is best suited to navigate these opportunities in a regulated and liquid format.’
Paul Crean, co-founder and CIO of Finisterre says: ‘In this more challenging environment for emerging markets where the long only or beta approach won’t work, we have been approached by institutional investors who are looking for benchmark agnostic total returns within a regulated, liquid format. Our response has been to hire Damian who brings long experience in the markets and has already successfully ran total return money at AXA IM and have combined this with Finisterre’s significant existing internal resources and idea sharing culture.’
Damien joined Finisterre in September 2015 following five years as Global Head of Emerging Markets Fixed Income at AXA IM (2010-2015) where he led the EM Team. Prior to this, Damien was Head of Sovereign and Emerging Markets Credit Trading and Structuring at Dexia Credit Local (2007-2010).

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