Emerging Markets Macro - Apollo
Background:
The Apollo Emerging Markets Macro Strategy commenced trading in May 2009 and seeks to generate attractive risk adjusted returns through a blended exposure to our emerging market portfolios including currencies, equities and debt instruments.
Investment Process
The process is anchored by the belief that by utilising a combination of both top-down and bottom-up approaches in currencies, equities and debt, investment opportunities can be clearly identified and exploited. The first element of the process is to identify the key cyclical and structural factors that we expect to emerge over the short to medium term (and whether these factors are best exploited through rates, equities, currencies, or a combination of them). A risk management overlay is employed to ensure that the portfolio is not overly concentrated in any type of instrument and allows the portfolio to be calibrated to match a preset threshold of maximum acceptable downside risk.
Within the equity component, securities are selected to capture the top-down factors through analysis that incorporates rigorous bottom-up methods to reflect the view on a sector, stock or country. A key element is the identification of powerful drivers of global markets.
Within the currency component, the team looks to profit from short and medium term moves in currency pairs, utilising an approach designed to perform across diverse market environments. Within the rates component, decisions are made on both a top down and bottom up basis and are designed to profit from price anomalies and future directional moves. Implementation of the portfolio is undertaken on both a relative value and directional basis.
Programme Description:
| Description: | Absolute Return – Emerging Markets |
| Investment Style: | Active Equities, Active Currency |
| Target Returns: | 18% per annum (rolling 3 year periods) |
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| Investment Universe: | |
| Selection Universe: | Broad Market (subject to liquidity limits) |
| Region: | Emerging & Frontier Markets |
| Instruments: | Equity Instruments/Derivatives (inc. FX)/ETF/Options/Swaps |
| Investment Limits: | |
| Country Limit: | 20% |
| VAR Limit: | 3.0% per day based on 2 standard deviation move over 24 hours |
| Structural Details: | |
| Vehicles: | Pooled Fund (Cayman domicile) |
| Liquidity: | Monthly |
| Minimum Investment: | USD$250,000 |
| Investment Manager: | The Cambridge Strategy |
| Management Fees: | 2.0% per annum |
| Performance Fees: | 20% per annum with a high - water mark |
Awards
The Cambridge Strategy Apollo Emerging Macro Programme
The Cambridge Strategy Asian Markets Alpha Programme
The Cambridge Strategy Emerging Markets Alpha Programme
The Cambridge Strategy Asian Markets Alpha Programme
