AMF authorises dividend futures specialist Melanion Capital
French regulator Autorité des Marchés Financiers has given its first authorisation for an alternative manager specialising in dividend futures to Paris based Melanion Capital.
The Melanion team includes CIO and founder Jad Comair (pictured), portfolio manager Antoine Iskandar, risk manager Bing Zhou, and business development manager Erwan Tigreat. The team trace their abilities to 2008, when the first dividend futures were listed on Eurex. Exchanges issuing this type of contract now includes NYSE Euronext, MEFF, LSE, Tokyo and Singapore.
Melanion said the number of market participants has grown to include institutions, banks, family offices and others.
The manager said that its trading strategy has generated average gross return of more than 20% per annum since inception in 2008, against an average 2% decline in the EuroStoxx50 over the period.
Comair said: “This strong demonstration of alpha generation is a key validation of the Melanion Capital investment approach,” which employs “quant and fundamental elements including bottom-up analysis, stock-picking, yield strategies and arbitrage to achieve its performance objectives.”
“Because they’re simple, easy to understand and answers investors’ need to hedge their dividend exposure, dividend futures have become very popular since 2008 in an environment where other assets were losing momentum after the financial crisis. Melanion Capital’s unique business model aims at capturing the opportunities in these derivatives while seeing them become the asset class of the next decade.
“Our investment team was there at the beginning and established itself through the difficult days of 2008 and 2010. We firmly believe that Melanion Capital embodies a ‘first mover advantage’ in this sector and we look forward to being able to demonstrate our strengths and our ability to create alpha, on behalf of investors, in a wide range of market conditions.”