Signet Global Multi-Strategy Fund


Investment Objectives

Signet Global Multi-Strategy portfolio aims to be neutral to markets while capturing gains from corporate events and changes in valuation relationships. Signet GMS therefore invests in a hedged manner across corporate events such as mergers, acquisitions, spin-offs or re-financings. The portfolio also invests in other forms of non-directional investing such as arbitrage and relative value situations. Returns tend to be non-directional, thus are not driven by rising or falling markets.

GMS is focused first and foremost on downside protection. The portfolio invests in a diversified range of institutional strategies across the globe. At the end of 2018, it has significantly increased focus on Arbitrage and Relative Value investing, while reducing managers with greater exposure to market risks. Capital protection, while capturing available gains from non-directional investments, is more important than ever.

Signet feels that the Global Multi-Strategy Fund is structured to deliver objective returns of +4-8% (in USD) while protecting investor capital.

Fund Strengths

  • Proven active approach to risk management and portfolio construction, with a focus on delivering absolute returns regardless of the overriding market environment
  • Low correlation to equities
  • A cohesive six-person investment team with experience across multiple economic cycles and a diverse set of geographies and regulatory environments
  • Focus on understanding the minutiae of portfolio risk and positioning

Portfolio Strategies

Merger Arbitrage:

Hard catalyst event-driven equity exposure with low exposure to equity markets – return generation through positioning in mergers and acquisitions

Quantitative Trading:

Related securities temporarily mispriced

Long/Short Credit:

Hedging out market risks in bonds

Special Situations:

Rights issues, spin-offs or re-financings - hedged

Capital Structure Arbitrage:

Long / short securities of the same company

Relative Value:

Long / short related equities (HoldCo vs subs, A shares vs B)

Equity Long/Short:

Long / short positions hedging market risk (typically beta neutral strategies)

Distressed:

Long/short distressed and stressed credits to capture recovery values, hedged

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