Investment Objective
Lazard Rathmore Alternative Fund seeks absolute returns through event driven/special situation strategies and convertible arbitrage. The Fund aims to identify opportunities through proprietary screening tools, quantitative analysis and robust fundamental research. Various trading strategies are utilized including, but not limited to, monetizing opportunities created by idiosyncratic events (buybacks, exchanges, sweeteners, etc.), volatility capture, and relative value credit trades. Trading strategies typically utilize convertible bonds and positions are typically structured with an associated equity hedge.
Latest Meeting Note
Meeting 09 Jul 2020
Lazard Rathmore Alternative is an event driven convertible arbitrage fund, seeking to generate equity-like return with an annualised volatility similar to Investment Grade Credit. The portfolio is run by Sean H. Reynolds who has the supp...
Lazard Rathmore Alternative is an event driven convertible arbitrage fund, seeking to generate equity-like return with an annualised volatility similar to Investment Grade Credit. The portfolio is run by Sean H. Reynolds who has the support of a 11-member dedicated team (at the strategy level the team runs about $1.1 billion). The strategy combines three different alpha sources to provide a market neutral return stream that is expected to show low correlations to traditional asset classes. These are Volatility (gamma trading), Relative Value Credit and Special Situations. According to the PM, the current opportunity set for the strategy remains highly compelling. In addition to elevated levels of volatility, an active/record breaking primary market, cheap secondary valuations, low interest rates (funding costs are 30% cheaper vs. 4 months ago) and a higher carry makes for very attractive potential returns on a forward-looking basis.
Performance
JAN | FEB | MAR | APR | MAY | JUN | JUL | AUG | SEP | OCT | NOV | DEC | YTD | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2023 | 0.7 | 0.8 | 0.3 | 0.5 | 0.6 | 0.1 | 0.6 | 0.8 | 0.6 | 0.1 | 0.8 | 0.1 | 0.9 | |
2022 | 0.4 | 0.7 | 0.1 | 0.8 | 0.9 | 0.1 | 0.3 | 0.9 | 0.6 | 0.6 | 0.7 | 0.8 | 0.5 |