Signet Global Multi-Strategy Fund
The post-financial crisis world is sluggish and deflationary, with authorities looking for ‘new’ solutions to fix national economies in dire need of growth and deleveraging. Monetary, regulatory and fiscal experiments and errors have lead to negative interest rates and inflated asset prices, difficult and dangerous for investors to manage. In such an environment, Signet cannot count on economic growth to create value and returns for investors as earnings growth is hard to come by.
GMS has an objective to generate steady mid-single digit returns in this environment while protecting investor’s capital. This can be accomplished a) through earning large yields in a short-term well-researched portfolio of bonds and loans, or b) by investing long and short in a protected manner in companies’ undergoing change and revaluation for business reasons (i.e., mergers, acquisitions), regulatory or legal reasons.
Core allocation composed of High Yielding securities (mostly bonds and loans) with the objective to capture yields of 5-10%
Niche strategies providing uncorrelated returns for diversification
Long/Short Low Net
Equity exposure with low exposure to overall equity market movements – return generation through stock selection
Shorter term opportunities and hedging of unwanted overall portfolio risks