Zen Capital Management Significantly Outperforms Peers in March
Sydney, Australia – The Zen Capital Management Global Fund SP rose 1.46% (gross) in March, significantly outperforming the HFRI Macro Systematic Diversified Index which rose 0.84%. Daily portfolio volatility was approximately 20% lower than the volatility of the S&P500 over the same period.
Managing Director Gregory Carroll said “We are extremely happy with our March results. Not just because of the magnitude of the return, but because our returns came from a broad range of instruments across a broad range of markets. Our GBP and JPY shorts performed well. So too did our long Ethanol, Gas and Cotton positions. US Healthcare also delivered strong gains”.
Zen Capital Management trades liquid exchange-traded instruments. With very few exceptions, the fund seeks instruments with Net Assets in excess of $500M USD. One such exception is the Market Vectors Rare Earths ETF which has Net Assets of $140M USD.
Gregory Carroll said “We do try to be a little different to our competitors. Our system flagged a very strong downtrend in the Rare Earths ETF. We established a position early in the trend and it turned out to be our biggest percentage mover for the month. Our risk metrics kept the position small so its contribution to our performance was also small but meaningful nonetheless”.
Zen Capital believes the recent announcements from North Korea regarding their nuclear intentions, and from Japan regarding quantitative easing, have given investors a considerable amount of important information to consider. They believe the current corrective phase will be short-lived because central banks continue to provide liquidity. However, they do see risks ahead from war and from a spike in inflation but expect markets are likely to trend higher until one of these external shocks is confirmed, if at all.
Gregory Carroll said “Regardless of the fundamental news flow, we will continue to maintain a well-diversified, low volatility portfolio as governed by our models”.
About Zen Capital Management:
Zen Capital Management was formed in 2012 with the sole purpose of providing Investment Advisory services to the Zen Capital Management Global Fund SP. The company employs a proprietary investment process which is driven by a rigorous quantitative model, macro-economics, and a decade of experience in financial markets.
Zen’s strategy is highly scalable since it only trades highly liquid, exchange-traded securities consisting predominantly of index and commodity futures, exchange traded funds and stocks. The fund also trades highly liquid currency pairs in the global interbank market.
The fund is Cayman-domiciled and is currently available to wholesale investors who are non-US taxpayers. The fund is administered by Apex Fund Services and all trading is through Interactive Brokers LLC. The fund commenced trading on 1 October 2012.