Zen Capital Management Delivers January Loss, Technical Problems Resolved

Sydney, Australia – The Zen Capital Management Global Fund SP fell 1.06% during the month. Of this 0.38% is attributable to trading activities whilst the remainder reflects fund administration and management costs.

For more than half of January technical problems prevented the fund from trading. Managing Director Gregory Carroll said “Since launching the fund on 1 October 2012 our data feed from the NYSE has been terminated on five occasions and left us without data for seven weeks in total. Whilst we do have a backup data source, our review process in January revealed our trading system database had been partially corrupted as a result of the successive terminations”.

Despite the problems the fund has faced, Zen has released an illustration of the significant potential of their strategy. Zen has taken five major markets across different asset classes and, for the purposes of illustration, assumed an equally-weighted portfolio. Using the error-free trading signals generated by Zen’s model the portfolio would have delivered an indicative return of 5.43% for the four months to the end of January 2013.

Mr Carroll said “For interest, we also analysed the signals from our model from 1 January 2012 to 31 December 2012 using just the S&P500 index. This analysis revealed an indicative return (unleveraged) of 26.4% for the 12 months vs a buy-and-hold return of 13.5%”.

Zen stressed that past results are not indicative of future performance.

Since inception the fund has endured an extremely difficult set of circumstances which have clearly impacted performance. Mr Carroll said “as of 6 February all the data problems have been solved”.

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.