Longchamp Solferino Credit Fund

×Info! No posts or attachments to display.

Strategy Overview

The Fund’s objective is to generate long-term capital appreciation by investing with an opportunistic approach in speculative-grade Fixed Income securities such as High Yield, Hybrid and Convertible Bonds from Corporates and Financial issuers. The unconstrained portfolio aims to use the seniority of bonds and their income to mitigate drawdowns from a high conviction approach but also to use its flexibility to allocate across the risk spectrum depending on the stage of the credit cycle. The Fund is compliant with UCITS concentration rules.

The investment strategy is focused on the European bond markets with a “Value” 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.

Funds Facts

Legal Structure:

UCITS Sub-Fund

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

Years - Fund Manager's Capital Markets Experience
Years - UCITS Fund Track Record
Years - Fund Manager's Portfolio Management Experience
Annual Outperformance (in bps) ITD vs HY Indices*
*BBG Pan-European HY Index and iBoxx EUR Liquid High Yield Index
Share I1C | fr0013442597

Performance as of 2024-07-17

NAV

1 153,90 €

YTD

+5,39%

MTD

+0,40%

3 YEARS

+3,59%

LTD

+15,39%

Past performance is not an indicator of future performance.

Informations

Strategy
  • High Yield Credit

Benchmark
  • The net annualized performance of the Sub-Fund can be compared to:
    o €STR capitalized + 8.5bps + 2% for the share I
    o €STR capitalized + 8.5bps + 1.5% 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

Key Professionals

Jean Fau

Credit Fund Manager 

Jean has 30 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

President – Managing Director

David is Chief Executive Officer at Longchamp Asset Management, which he founded in 2013. Previously, he was a Managing Director at Morgan Stanley & Co. International Plc, heading the investment bank’s Funds and Fund Linked business globally. In particular, he was in charge of the FundLogic UCITS Platform and served as President of the French asset management company, FundLogic SAS. Prior to joining Morgan Stanley, David had spent fourteen years within the Global Equity and Derivatives Solutions division at Société Générale. After joining the group in Paris, David moved to Milan to head the global capital markets operations including all Equity and Fixed Income activities. He also chaired the Italian alternative asset management company, Lyxor SGR. Thereafter, he moved to New York to head up Structured Products Sales for the Americas. David holds a master’s degree in Business Administration from EDHEC, Lille, France.

 
Lorenc Golemi

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.

 
Thibault Bourgeois

Junior Portfolio Manager 

Thibault is Junior Portfolio Manager at Longchamp AM. Previously, he was in charge of the sales and structuration of investment solutions for institutional clients at Nexo Capital. Before that, Thibault had experiences at ERAAM in the multi-management hedge funds selection and sales teams and at Amundi in the Institutional Portfolio Management team. Thibault holds a BSc. Actuarial Mathematics/Finance from Concordia University (CA) and a Master in Management from ESCP Business School (FR).

Shares

Investor profil
Currency
ISIN
BBG Code
Inception
Mgmt Fee
Perf Fee

Share I1C *

EURFR0013442597LONSOLI FP31.01.20201.00%10%

Share I2C

EURFR0013518123LONSOLC FP1.00%10%

Share I1D

EURFR0013518131LONSOLD FP15.07.20201.00%10%

Share R

EURFR0013442605LONSOLR FP1.50%10%