Longchamp Solferino Credit Fund

Solferino Credit Strategy

The objective of the Longchamp Solferino Credit Fund (the “Sub-Fund”) is to deliver an annualized performance net of fees higher than that of the Eonia +2.00% over a recommended investment period of 2 years minimum.

The investment strategy is focused on the European bond markets with a “Value” approach, that is to say an approach aiming to identify and invest in securities which the Investment Manager estimates are undervalued and presenting, based on its analysis, attractive characteristics in terms of yield and potential for capital gains. This bottom-up approach is also combined with macro analysis aimed at determining the portfolio’s positioning over the course of the credit cycle and establishing a “top-down” view of the portfolio’s risk level.

The combination of these two “top-down” and “bottom-up” approaches gives the Investment Manager the flexibility to considerably reduce its credit exposure in the absence of conviction opportunities and to then allocate to defensive supports such as sovereign bonds.

  • Apply a Private Market approach to listed Credit Market with a disciplined value approach Buy as if you held to maturity
  • Leverage the unique total return opportunities from tradable credit actively monetize gains of re pricing of risk and exit fundamental underperformers
  • High Conviction approach with a concentrated portfolio (25-35 positions with 3%-7% weighting)
  • High Yield returns (7%-10%) with Investment Grade volatility (3%-6%)
  • Attractive Sharpe Ratio Target (1.5 +) in line with what has been historically accomplished Aim to minimize drawdowns at 5%. Volatility should be limited in most market environments except in deep financial crisis
  • Issuers domiciled mainly in Europe

Performance as of 27/05/2020

NAVMTDYTDLTD
842.37€5.23%-15.76%-15.76%
Loading

Past performance is not an indicator of future performance. 

Details

Strategy
  • High Yield Credit
Benchmark
  • The net annualized performance of the Sub-Fund can be compared to:
    o Eonia Capitalized +2.00% for the share I
    o Eonia Capitalized +1.50% for the share R
Investment Process
  • Return construction coming cumulatively from income carry and capital gains
  • Careful security selection among the highest yield securities in the liquid credit universe
  • Use seniority of credit to increase portfolio concentration
  • Disciplined Capital Deployment: maximize return on risks taken, paying strong attention to drawdowns
  • Full flexibility in risk allocation. Value approach uses sell-offs as opportunities
Philosophy
  • Credit markets are cyclical and mean-reverting
  • Technical factors can drive pricing away from fundamentals
  • Persistent inefficiencies can be exploited through disciplined money management and bottom-up issue selection

Fund Facts

Legal Structure:UCITS Sub-Fund (Longchamp SICAV)
SICAV :Longchamp SICAV
Investment Manager:  Longchamp Asset Management SAS
Domicile: France
Base Currency:EUR
Net Asset Value Frequency:Weekly
Dealing Deadline (Subscription)12 midday Paris time 1 Business Days prior to the relevant Dealing Day
Dealing Deadline (Redemption):            12 midday Paris time 5 Business Days prior to the relevant Dealing Day
Settlement Date (Subscription):Within 3 Business Days after the relevant Dealing Day
Settlement Date (Redemption):Within 3 Business Days after the relevant Dealing Day

Key Professionals

Jean Fau
Credit Fund Manager  

Jean has 25 years of experience in capital markets and joined Longchamp Asset Management in September 2019 to lead Credit Strategies and manage the Credit Value Fund.
His career started in 1994 at Goldman Sachs, taking various responsibilities in Convertible Bonds and Equity Derivatives, gaining close exposure to relative value and credit hedge funds. In 2003, Jean joined Susquehanna International as a Portfolio Manager, responsible for European Discretionary Investments across credit, convertible and event-driven strategies. In 2009 Jean left to launch Brennus Asset Management LLP, a London-based alternative investments manager, focused on convertible bonds and other hybrid credit instruments, using a mix of directional and relative value strategies. Before joining Longchamp Jean was a Partner and Senior Portfolio Manager at Chenavari Credit Partners from December 2014 until April 2018, where he ran High Yield, Financials and Convertible Bonds strategies across all mandates.
Jean holds a master’s degree in Business Administration from HEC Paris, France.

David Armstrong
Chief Investment Officer 

David is Chief Investment Officer at Longchamp Asset Management. Previously, he was a Managing Director at Morgan Stanley & Co. International Plc, acting as global head of the investment bank’s Funds and Fund Linked business. In particular, he was in charge of the FundLogic Alternatives Plc (UCITS) Platform and served as President of the French asset management company, FundLogic SAS. Before joining Morgan Stanley, David worked at Société Générale Corporate & Investment Banking in the Equity Derivatives division in Paris before moving to Milan to take the responsibility for the Italian Capital Markets, and then joining Société Générale’s New York office to head the Structured Products division for the Americas. David holds a master’s degree in Business Administration from EDHEC, Lille, France.

Isabelle Mérou
Portfolio Manager

Isabelle is a Portfolio Manager at Longchamp Asset Management. She is in charge of Private Banking, Multi-management and fund structuring. Prior to joining Longchamp AM, Isabelle worked at Société Générale Bank & Trust (SGBT) at the dealing desk for OTC derivatives. Before SGBT, Isabelle was part of the structured products and FX derivatives sales team at Société Générale Corporate et Investment Banking (SGCIB). Isabelle holds an Engineer degree in financial engineering.

Lorenc Golemi
Head of Financial Engineering and Chief Risk Officer

Lorenc is the Chief Risk Officer at Longchamp AM. Before joining Longchamp AM, Lorenc worked in consultancy and advisory in investment banking and asset management. Previously he worked as Portfolio Manager, Risk Manager and Financial Engineer at UBS AM, CommerzBank and Dresdner Kleinwort Benson. He was in charge of systematic strategies and risk management of volatility and absolute return funds. Lorenc holds an Engineer degree in computer science and a master’s degree in applied mathematics.

Fund Share Class Details

* Reference share classes used to report NAVs, Daily, MTD, YTD and LTD performances.
** Includes a maximum of 0.25% p.a. external operating fees (auditor, custodian, distribution, and lawyers). 

Overview

Solferino Credit Strategy

The objective of the Longchamp Solferino Credit Fund (the “Sub-Fund”) is to deliver an annualized performance net of fees higher than that of the Eonia +2.00% over a recommended investment period of 2 years minimum.

The investment strategy is focused on the European bond markets with a “Value” approach, that is to say an approach aiming to identify and invest in securities which the Investment Manager estimates are undervalued and presenting, based on its analysis, attractive characteristics in terms of yield and potential for capital gains. This bottom-up approach is also combined with macro analysis aimed at determining the portfolio’s positioning over the course of the credit cycle and establishing a “top-down” view of the portfolio’s risk level.

The combination of these two “top-down” and “bottom-up” approaches gives the Investment Manager the flexibility to considerably reduce its credit exposure in the absence of conviction opportunities and to then allocate to defensive supports such as sovereign bonds.

  • Apply a Private Market approach to listed Credit Market with a disciplined value approach Buy as if you held to maturity
  • Leverage the unique total return opportunities from tradable credit actively monetize gains of re pricing of risk and exit fundamental underperformers
  • High Conviction approach with a concentrated portfolio (25-35 positions with 3%-7% weighting)
  • High Yield returns (7%-10%) with Investment Grade volatility (3%-6%)
  • Attractive Sharpe Ratio Target (1.5 +) in line with what has been historically accomplished Aim to minimize drawdowns at 5%. Volatility should be limited in most market environments except in deep financial crisis
  • Issuers domiciled mainly in Europe
Performance

Performance as of 27/05/2020

NAVMTDYTDLTD
842.37€5.23%-15.76%-15.76%
Loading

Past performance is not an indicator of future performance. 

Details

Details

Strategy
  • High Yield Credit
Benchmark
  • The net annualized performance of the Sub-Fund can be compared to:
    o Eonia Capitalized +2.00% for the share I
    o Eonia Capitalized +1.50% for the share R
Investment Process
  • Return construction coming cumulatively from income carry and capital gains
  • Careful security selection among the highest yield securities in the liquid credit universe
  • Use seniority of credit to increase portfolio concentration
  • Disciplined Capital Deployment: maximize return on risks taken, paying strong attention to drawdowns
  • Full flexibility in risk allocation. Value approach uses sell-offs as opportunities
Philosophy
  • Credit markets are cyclical and mean-reverting
  • Technical factors can drive pricing away from fundamentals
  • Persistent inefficiencies can be exploited through disciplined money management and bottom-up issue selection
Fund Facts

Fund Facts

Legal Structure:UCITS Sub-Fund (Longchamp SICAV)
SICAV :Longchamp SICAV
Investment Manager:  Longchamp Asset Management SAS
Domicile: France
Base Currency:EUR
Net Asset Value Frequency:Weekly
Dealing Deadline (Subscription)12 midday Paris time 1 Business Days prior to the relevant Dealing Day
Dealing Deadline (Redemption):            12 midday Paris time 5 Business Days prior to the relevant Dealing Day
Settlement Date (Subscription):Within 3 Business Days after the relevant Dealing Day
Settlement Date (Redemption):Within 3 Business Days after the relevant Dealing Day
Key Professionals

Key Professionals

Jean Fau
Credit Fund Manager  

Jean has 25 years of experience in capital markets and joined Longchamp Asset Management in September 2019 to lead Credit Strategies and manage the Credit Value Fund.
His career started in 1994 at Goldman Sachs, taking various responsibilities in Convertible Bonds and Equity Derivatives, gaining close exposure to relative value and credit hedge funds. In 2003, Jean joined Susquehanna International as a Portfolio Manager, responsible for European Discretionary Investments across credit, convertible and event-driven strategies. In 2009 Jean left to launch Brennus Asset Management LLP, a London-based alternative investments manager, focused on convertible bonds and other hybrid credit instruments, using a mix of directional and relative value strategies. Before joining Longchamp Jean was a Partner and Senior Portfolio Manager at Chenavari Credit Partners from December 2014 until April 2018, where he ran High Yield, Financials and Convertible Bonds strategies across all mandates.
Jean holds a master’s degree in Business Administration from HEC Paris, France.

David Armstrong
Chief Investment Officer 

David is Chief Investment Officer at Longchamp Asset Management. Previously, he was a Managing Director at Morgan Stanley & Co. International Plc, acting as global head of the investment bank’s Funds and Fund Linked business. In particular, he was in charge of the FundLogic Alternatives Plc (UCITS) Platform and served as President of the French asset management company, FundLogic SAS. Before joining Morgan Stanley, David worked at Société Générale Corporate & Investment Banking in the Equity Derivatives division in Paris before moving to Milan to take the responsibility for the Italian Capital Markets, and then joining Société Générale’s New York office to head the Structured Products division for the Americas. David holds a master’s degree in Business Administration from EDHEC, Lille, France.

Isabelle Mérou
Portfolio Manager

Isabelle is a Portfolio Manager at Longchamp Asset Management. She is in charge of Private Banking, Multi-management and fund structuring. Prior to joining Longchamp AM, Isabelle worked at Société Générale Bank & Trust (SGBT) at the dealing desk for OTC derivatives. Before SGBT, Isabelle was part of the structured products and FX derivatives sales team at Société Générale Corporate et Investment Banking (SGCIB). Isabelle holds an Engineer degree in financial engineering.

Lorenc Golemi
Head of Financial Engineering and Chief Risk Officer

Lorenc is the Chief Risk Officer at Longchamp AM. Before joining Longchamp AM, Lorenc worked in consultancy and advisory in investment banking and asset management. Previously he worked as Portfolio Manager, Risk Manager and Financial Engineer at UBS AM, CommerzBank and Dresdner Kleinwort Benson. He was in charge of systematic strategies and risk management of volatility and absolute return funds. Lorenc holds an Engineer degree in computer science and a master’s degree in applied mathematics.

Shares

Fund Share Class Details

* Reference share classes used to report NAVs, Daily, MTD, YTD and LTD performances.
** Includes a maximum of 0.25% p.a. external operating fees (auditor, custodian, distribution, and lawyers). 

Sub-Fund Downloads