SERAFIN Diversified Arbitrage

Performance YTD 1.5% (as of 12 June 2024)
Fund size USD 15.7 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 fund is currently aimed at qualified investors in Switzerland.

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.

Facts & Figures Current monthly report (PDF)

Portfolio Management

Jonathan Stanford

Investment Manager
Alternatives
+41 (91) 942 71 71

Roberto Bottoli, CFA

Investment Manager
Alternatives
+41 (91) 942 71 71

Publications

Two Pager | Alternatives

Two Pager | Alternatives

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Facts & Figures
Portfolio allocations

Breakdown by currencies

Breakdown by countries

Top 5
Monthly comment

Comment May 2024

In May, the M&A market showed signs of heightened activity, but this was mostly due, in terms of volumes, to the tentative bids of Suzano SA for International Paper and BHP Group for Anglo American PLC. The binary conditions observed in previous months persist, with a clear distinction between low-risk deals and those with potential anti-trust challenges. Low-risk deals continue to trade at tight or even premium spreads. Conversely, transactions with any anti-trust risk trade at substantial spreads, reflecting the market's heightened sensitivity to regulatory challenges. We maintain our view that this increased focus on anti-trust litigation is overly priced-in, presenting opportunities for investors. The most notable deal in May, both strategically and from a size perspective, was the hostile bid of BBVA for Banco de Sabadell, in Spain: the acquisition, worth roughly USD 13bn, could reshape the Spanish banking sector. Additionally, private equity has shown some resurgence with a significant deal in the application software sector: the acquisition of Squarespace by Permira for USD 6.5bn. The primary market for convertible bonds showed signs of life in May after a quiet April. The month saw several new issuances, albeit only in the US market, which helped to reinvigorate investor interest. Europe remains subdued, but there are indications that activity may pick up in the coming months. Valuations in the convertible bond market faced mixed conditions. Interest rates reversed their upward trajectory, as did credit spreads. However, increased US issuance put a damper on valuations. Volatility in the underlying equities continues to provide opportunities to trade the deltas, generating income. Looking ahead, we anticipate a more robust primary market with new issuances offering attractive carry and appealing valuations. As we move into June, we remain cautiously optimistic about the M&A and convertible bond markets. While regulatory concerns and volatile interest rates present challenges, they also create opportunities for strategic investments.

Brief profile
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

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
Performance overview and key figures
Duration Fund
1 month 0.2%
3 months 0.5%
12 months -
since inception p.a. 3.3%
Year
2024 1.5%
2023 0.1%
since inception 1.6%
Rolling performance last 5 years

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.

Fund documents
Current documents
Archived monthly reports

The content of this website is directed at persons who are resident in Germany or Switzerland or who access this website from Germany or Switzerland.

This website and the information provided on this website shall not constitute an offer to sell or a solicitation to purchase or subscribe any shares or units in the funds mentioned on this website. The key investor information, the prospectus, the annual and semi-annual reports of the funds are published on this website to comply with statutory requirements.

Subscriptions will only be received and shares or units in the funds issued on the basis of the most recent key investor information and the contractual conditions set out in the prospectus in conjunction with the most recent annual and/or semi-annual report of the fund.

A financial investment is associated with risks. The value of a fund unit/share or investment, as well as the income derived from it, may be subject to fluctuations and are not guaranteed. The investor may not get back the full amount invested. Past performance is not indicative of future performance that may be expected.

The following information is general in nature and is not and may not be construed as constituting investment advice or any form of recommendation by Serafin Asset Management. Prior to any potential investment users should carefully consider the suitability of the investment for their individual circumstances and personal perspectives and should consult their tax, legal, financial, investment or other advisor.

For website visitors located in Germany: Please note the additional legal notices and the privacy policy.

For website visitors located in Switzerland: Please note legal information and the privacy policy as well as the information obligations (FINSA).

Any person who is a U.S. person (as such term is defined in Regulation S under the U.S. Securities Act of 1933) is not eligible to invest in the investment funds indicated on this website. I hereby certify that I am neither a citizen nor a resident of the United States of America and that I do not have a place of business in the United States of America and, in particular, that I am not a U.S. person (as such term is defined in Regulation S under the Securities Act of 1933).

The content of this website is directed at persons who are resident in Germany or Switzerland or who access this website from Germany or Switzerland.

This website and the information provided on this website shall not constitute an offer to sell or a solicitation to purchase or subscribe any shares or units in the funds mentioned on this website. The key investor information, the prospectus, the annual and semi-annual reports of the funds are published on this website to comply with statutory requirements.

Subscriptions will only be received and shares or units in the funds issued on the basis of the most recent key investor information and the contractual conditions set out in the prospectus in conjunction with the most recent annual and/or semi-annual report of the fund.

A financial investment is associated with risks. The value of a fund unit/share or investment, as well as the income derived from it, may be subject to fluctuations and are not guaranteed. The investor may not get back the full amount invested. Past performance is not indicative of future performance that may be expected.

The following information is general in nature and is not and may not be construed as constituting investment advice or any form of recommendation by Serafin Asset Management. Prior to any potential investment users should carefully consider the suitability of the investment for their individual circumstances and personal perspectives and should consult their tax, legal, financial, investment or other advisor.

For website visitors located in Germany: Please note the additional legal notices and the privacy policy.

For website visitors located in Switzerland: Please note legal information and the privacy policy as well as the information obligations (FINSA).

Any person who is a U.S. person (as such term is defined in Regulation S under the U.S. Securities Act of 1933) is not eligible to invest in the investment funds indicated on this website. I hereby certify that I am neither a citizen nor a resident of the United States of America and that I do not have a place of business in the United States of America and, in particular, that I am not a U.S. person (as such term is defined in Regulation S under the Securities Act of 1933).

The content of this website is directed at persons who are resident in Germany or Switzerland or who access this website from Germany or Switzerland.

This website and the information provided on this website shall not constitute an offer to sell or a solicitation to purchase or subscribe any shares or units in the funds mentioned on this website. The key investor information, the prospectus, the annual and semi-annual reports of the funds are published on this website to comply with statutory requirements.

Subscriptions will only be received and shares or units in the funds issued on the basis of the most recent key investor information and the contractual conditions set out in the prospectus in conjunction with the most recent annual and/or semi-annual report of the fund.

A financial investment is associated with risks. The value of a fund unit/share or investment, as well as the income derived from it, may be subject to fluctuations and are not guaranteed. The investor may not get back the full amount invested. Past performance is not indicative of future performance that may be expected.

The following information is general in nature and is not and may not be construed as constituting investment advice or any form of recommendation by Serafin Asset Management. Prior to any potential investment users should carefully consider the suitability of the investment for their individual circumstances and personal perspectives and should consult their tax, legal, financial, investment or other advisor.

For website visitors located in Germany: Please note the additional legal notices and the privacy policy.

For website visitors located in Switzerland: Please note legal information and the privacy policy as well as the information obligations (FINSA).

Any person who is a U.S. person (as such term is defined in Regulation S under the U.S. Securities Act of 1933) is not eligible to invest in the investment funds indicated on this website. I hereby certify that I am neither a citizen nor a resident of the United States of America and that I do not have a place of business in the United States of America and, in particular, that I am not a U.S. person (as such term is defined in Regulation S under the Securities Act of 1933).