SERAFIN Diversified Arbitrage
Fund size USD 17.1 Mio.
Past performance is not a reliable indicator of future performance. Please note that the aforementioned performance is shown in the fund currency USD (US Dollar) and not Euro and therefore currency influences in investment currencies other than the fund currency are not taken into account in the performance shown.
The SERAFIN Diversified Arbitrage Fund is a global risk arbitrage fund with daily liquidity.
The investment approach consists of combining various arbitrage strategies, particularly in the areas of merger arbitrage, convertible bond arbitrage and event-driven soft catalysts. The core of the portfolio is invested in low-risk merger arbitrage transactions and aims to exploit arbitrage spreads in a global universe. Another part of the portfolio is invested in an arbitrage strategy for convertible bonds that aims to exploit price inefficiencies in this asset class and achieve carry. These two investment components are complemented by tactical investments in other risk arbitrage strategies, including spin-offs and holding structures, which provide additional uncorrelated sources of alpha and have the potential to enhance returns and diversify the portfolio.
Portfolio Management
- Jonathan Stanford
-
Investment Manager
Alternatives - +41 (91) 942 71 71
- Roberto Bottoli, CFA
-
Investment Manager
Alternatives - +41 (91) 942 71 71
Portfolio Management
- Jonathan Stanford
-
Investment Manager
Alternatives
- Roberto Bottoli, CFA
-
Investment Manager
Alternatives
Publications
Two Pager | Alternatives
Breakdown by currencies
Breakdown by countries
Comment September 2024
In September, the global M&A market declined in volume and number of deals. Still, one big deal in the US catalyzed the attention of investors: the takeover of Frontier Communications, the wireline telecommunications company, by telecom giant Verizon. The deal, worth roughly USD 20bn, represents an important consolidation in the telecom sector and would allow Verizon to seize control of a scarce, strategic asset. Private equity was little active during the month. Merger arbitrage activity was dominated by the two ongoing antitrust trials where FTC (the U.S. antitrust agency) is trying to block the acquisition of Capri Holdings by Tapestry, in the apparel sector, and the takeover of grocery chain Albertsons Companies by rival The Kroger Co. The verdicts will be out in October and will be driving investors' risk attitude towards antitrust-sensitive transactions for some time.
The long wait for the Fed move was finally over, with a 50bp cut on September 18th. The month was marked by growing optimism in both stock and bond markets due to anticipated Federal Reserve policy shifts, along with signs of moderating inflation and cooling economic growth. Both the stock markets and bond markets showed some renewed volatility while navigating the macro uncertainty. This was beneficial to the Convertible portfolio which saw some increase in valuations, particularly in the US utility and energy space. The primary market was still rather disappointing with only one € 500m deal in Europe from Leg Immobilien AG, and one notable US deal with another 1bn bond by Bitcoin hoarder MicroStrategy.
We remain optimistic about the potential of the arbitrage strategy in the current context of shrinking inflation and easing monetary policies. These factors should support a healthy M&A deal-making environment and the primary market for convertible bonds going forward.
| Domicile of fund | Luxembourg |
|---|---|
| Legal form | SICAV (UCITS V) |
| Investment universe | Global |
| Investment manager | Serafin Asset Management Ltd, Zug |
| Management company (ManCo) | Lemanik Asset Management S.A., Luxembourg |
| Custodian bank | UBS Europe SA, Lux. Branch |
| Launch date | 15.12.2023 |
| Recommended investment horizon | 5 years |
| Reference currency | USD |
| ISIN / Bloomberg-Ticker (respective share class) | USD: LU2718004018 / SEDIARU LX CHF: LU2718003986 / SEDIARC LX EUR: LU2718004281 / SEDIARE LX |
| Distributions | reinvesting |
| Subscription and redemption | daily (cut-off 15.00 CET) |
| Tax transparency | CH, AT |
| Tax status Germany | Investment funds with any subsequent certification |
| Registered for distribution | CH, DE, LUX (IT: professional clients only) |
Gebührenstruktur
| Subscription and redemption fee | none |
|---|---|
| Management fee p.a. | Share Class USD: 0.70% Share Class CHF: 0.70% Share Class EUR: 0.70% |
| Profit sharing | A performance fee of 15% of the returns generated above the respective risk free rate (USD SOFR, EUR ESTR, CHF SARON) is charged. |
| Total expense ratio p.a. (per tba; TER) | tba |
| Duration | Fund |
|---|---|
| 1 month | -0.0% |
| 3 months | 1.4% |
| 12 months | - |
| since inception p.a. | 5.4% |
| Year | |
| 2024 | 4.2% |
| 2023 | 0.1% |
| since inception | 4.3% |
The gross performance takes into account the costs incurred at fund level (e.g. management fee) without including the costs incurred at investor level (e.g. front-end load and custody fees). The net performance also takes into account an initial sales charge of 0.00% in the first period under review.