The opportunity

A systematic investment strategy in alternative risk premia that incorporates a broader set of instruments and markets than (most) established managers. This includes emerging markets and more ‘esoteric’ markets such as rubber, canola and electricity. It seeks to deliver returns that are uncorrelated with traditional asset classes. The diverse combination of alternative risk premia across a broad range of markets and instruments is designed to deliver attractive risk-adjusted returns over the long term. With less sensitivity than stocks to market fluctuations, an alternative risk premia strategy provides exposure to multiple hedge fund return streams within a single investment.

About the manager

CdR Group was founded in Switzerland in 2012. It has assets under management of US$2.3B and 39 employees in offices across London, Switzerland, the US and the Middle East. CdR Capital Ltd is based in London and manages systematic and esoteric investment strategies within the group. It is majority owned by the CdR Group4.

CdR Capital Ltd has 15 staff and commenced managing alternative risk premia strategies in 2017. The core of the investment team has been working together managing alternative risk premia strategies for over 10 years, at CdR and before that at Fulcrum Asset Management. The Head of Quantitative Strategies, Researchers and Head of Trading built and ran the alternative risk premia products at Fulcrum from 2007 to 2014 with substantial assets for institutional clients.

About the strategy

The CdR Systematic Absolute Return Fund has a risk-based investment approach across multiple alternative risk premia (incl. trend, volatility, value, carry and event-driven) in developed, emerging and esoteric markets, and across all asset classes (equities, fixed income, commodities, credit and currencies). Its flagship strategy targets a return of 8% net p.a. with a high degree of consistency, and volatility of 8-12% p.a. CdR can also tailor mandates to different risk targets, and mixes of traditional and esoteric markets.

CdR utilises specialised systematic trading systems across a universe of over 500 instruments, with direct access to trading destinations in over 50 countries on 6 continents. 100% of the portfolio is traded electronically with integrated connectivity to liquidity in developed, emerging and esoteric markets. The strategy is amongst the most differentiated in its category.

1. Targets are not guaranteed returns and should not be relied upon in making an investment decision. Targets are based on a combination of back testing and future expectations solely of the investment team within current market period and expectations, which are subject to change. Return to the reference

2. AUM estimated as at June 2019. ‘Firm’ and 'CdR' refers to the entire group of companies within CdR including CdR Capital Ltd (launched in 2014), CdR Capital SA (launched in 2012), CdR Advisors DMCC and CdR Capital Limited (launched in 2014 and 2017 respectively) and CdR Hollander (stake acquired by CdR in 2016). Return to the reference

3. The investment team were running strategies since 2007 at their previous employment and joined CdR in 2017. Return to the reference

4. CdR Capital Ltd is part owned by staff and hedge fund firm, P. Schoenfeld Asset Management (PSAM). CdR Capital is exempt from the requirement to hold an Australian Financial Services License under the Corporations Act 2001 (Cth) in respect of the financial services it provides to Wholesale Clients, and is not licensed to provide financial services to retail clients, in Australia. CdR Capital is authorised and regulated by the FCA in the United Kingdom and governed by the laws of England and Wales. Return to the reference