Zen Capital Management Marginally Outperforms Peers in February

Sydney, Australia – The Zen Capital Management Global Fund SP marginally outperformed its peers in February. The HFRI Macro Systematic Diversified Index recorded a fall of 1.11% for the month whilst the fund lost 1.08% (gross).

Since launch on 1 October 2012 the fund has been plagued with data-related problems. All such problems were resolved as of 6 February. However, these problems impacted performance over the month.

Managing Director Gregory Carroll said “Having commenced building our portfolio from a zero base on 6 February we only had a short opportunity to accumulate a profit before the markets become volatile. As such, it is unsurprising that we recorded a small loss for the month. However, we are very pleased with the magnitude of our loss compared with those recorded by our peers who enjoyed both orderly markets from 1 February and the benefit of commencing the month with an established portfolio”.

From a markets perspective the month was split into two halves. Equity markets rose steadily for 12 trading days followed by 7 trading days of extreme volatility. Similar patterns of volatility were observed in many instruments including almost all equity markets; many commodities, several currencies; and many bonds.

The closely-watched CBOE VIX (a measure of risk aversion) surged a massive 54% over 5 trading days during the second half of February. Moves of this magnitude have historically been associated with large corrections in the S&P500 thus it is surprising the S&P500 only fell 3% from high to low through February.

Mr Carroll said “Clearly we have considerable work to do in demonstrating to investors the true potential of our strategy. We entered March with a complete portfolio and are very pleased with the results to date. With March being the first full month of unencumbered trading we believe the results we deliver will be a true reflection of the potential of our strategy”.

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.