Zen Capital Management Dips, Outperforms Again

A unique Global Macro Hedge Fund designed to deliver attractive returns, excellent liquidity, and low correlation with the major asset classes.

Sydney, Australia – The Zen Capital Management Global Fund recorded a loss of 0.95% (gross) for June. The fund recorded its fourth consecutive month of outperformance against the HFRI Fund Weighted Composite Index which lost 1.31%. Over the month the daily volatility of the portfolio was 0.65%. This is approximately 40% lower than the volatility of the S&P500 over the same period.

Managing Director Gregory Carroll said “June was a difficult month for most managers. Of the 28 investment styles monitored by the HFRI Indices only 3 finished the month with a gain”.

Intra-month volatility was high in many markets. For example, the 1.5% decline recorded by the S&P500 over the month hides a large 5.7% intra-month trading range. Similarly, the 3.3% decline in US Bonds (as indicated by the TLH ETF) hides a very large 7.7% trading range.

Mr Carroll said “In terms of outlook our system is currently showing mixed signals. The bounce we are seeing in the major equity markets could well be an oversold bounce within the confines of an intermediate downtrend. The signals are not clear at this stage so we have reduced our exposure to equities as we await some clarity”.

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.