Zen Capital Management Delivers December Loss, Maintains Very Low Volatility

Sydney, Australia – The Zen Capital Management Global Fund SP fell 1.44% during the month of December. Of this 0.77% is attributable to trading activities whilst the remainder reflects fund administration and management costs. Daily Volatility for the fund was 25% of that recorded by the S&P500.

It its November 2011 Investment Perspectives, Morgan Stanley revealed the average “Hedge Fund” has an almost 90% correlation to the S&P500. As at 30 December the S&P500 had fallen 1.29% on fears surrounding the US “Fiscal Cliff”. Zen believes the average hedge fund would have recorded a loss of a similar amount. Managing Director, Gregory Carroll said “Those funds which had shorted as the Fiscal Cliff deadline approach would have been sitting on handsome profits as at 30 December. The Zen Capital Management Global Fund was short in late December”.

Despite the Fiscal Cliff deadline being missed, US equities rallied over 2% on 31 December and funds which had shorted (including Zen) were stopped out of their previously profitable positions. Mr Carroll said “The previously underperforming funds were very lucky to see their losses turn into a profit on the last trading day of the year. Unsurprisingly, the HFRX Equity Hedge Index recorded a 0.44% gain for the month, just behind the 0.78% gain recorded by the S&P500”.

A distinguishing feature of Zen Capital Management is its high level of transparency. Mr Carroll said “We sincerely thank those of you who have taken the time to comment on our high level of transparency. Clearly it is rare for a fund manager to discuss, in intimate detail, the critical thinking which sits behind the management of a fund”.

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.


For more information please contact:

Gregory Carroll
Managing Director
Zen Capital Management Pty Ltd
+612 8005 2308

Keywords: Global Macro, Hedge Fund.