Rothschild Asset Management has launched a multi-asset global macro fund, R Karya Macro Fund.
This Ucits-compliant strategy is a subfund part of InRIS Ucits plc created last May, a fund dedicated to alternative solutions in a Ucits format.
It is the fruit of a partnership between Rothschild HDF Investment Solutions, the American manager Karya Capital Management and the Innocap management account platform.
R Karya Macro Fund seeks to deliver performance which is uncorrelated with equities and rates. It is positioned as an alternative to risky assets with historically high valuations.
The multi-asset global fund can position itself on purchases and sales or implement arbitrage strategies in the main asset classes (equities, rates and currencies) of developed countries.
The management team identifies macroeconomic themes with the potential to impact the financial markets and identifies the most responsive risk premiums, both upwards and downwards, with the greatest potential to realise their assumptions.
Themes are generally held in the portfolio for between 18 and 24 months. However, their implementation, through risk premiums, may be for shorter periods of between three and six months.
The R Karya Macro Fund’s investment process is identifiable by its diversification given that it comprises between 6 and 12 investment themes.
The Rothschild HDF Investment Solutions team has selected New-York based manager Karya Capital Management to implement an overall macro strategy compatible with the Ucits
investment format in terms of diversification and liquidity.
Karya Capital Management has been founded in 2011 by Rajiv Sobti and manages over $1bn in assets.
“R Karya Macro Fund is expanding our range of alternative UCITS funds which includes the R Parus Fund and the R CFM Diversified Fund. It makes sense to offer a global macro strategy given the current environment of low rates and high valuations for financial assets.
“We continue to assist investors with their main challenges: research, diversification via new performance engines, management of risk exposure and satisfaction of regulatory requirements” commented Charles Lacroix, head of Development at Rothschild HDF Investment Solutions.