Zen Capital Management Reviews its First Year of Operation

Sydney, Australia – The Zen Capital Management Global Fund SP was launched one year ago (on 1 October 2012). Since inception the fund has delivered a return, after costs but before fund administration fees, of -7.57%.

Managing Director Gregory Carroll said “Most of our losses over the 12 months resulted from intermittent data problems experienced during our first 5 months of trading. Over that period our NYSE data was terminated on five occasions and, intermittently, left us without data for a total of seven weeks. We also experienced data issues in July 2013 and completed a major technology upgrade at that time to resolve those issues”.

Despite a disappointing 12 months, in 4 of the 6 months in which the fund did not experience technical issues its performance exceeded that of its peers. Over those four consecutive months the fund returned 3.92% against the HFRI Composite Index which rose just 1.09%.

In reviewing its performance, Zen has announced it will no longer target portfolio volatility which is half that of the S&P500. It will also relax its correlation target of 30% against the S&P500. Zen says these changes will improve their risk/return profile during critical periods. Zen also announced significant enhancements to its trading system.

Mr Carroll said “as we move towards being 100% systematic we have been testing and programming a number of enhancements to our trading system. Our latest enhancements, implemented on 1 October 2013, are the most significant changes we have made to our system in the 12 years of its development. As such, we expect 1 October 2013 to be a significant turning point in the performance of the 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.