A pan-Asian Event Driven and Special Situations strategy, seeking to generate uncorrelated returns over market cycles
Pictet Asset Management’s Lotus strategy seeks to identify and capitalise on both the short and long-term themes driving corporate events. It aims to generate consistent, uncorrelated returns with limited volatility over market cycles.
Watch: Why structural change in Asia equals opportunity
It aims to benefit from the growth in corporate activity across the region, including opportunities arising from Japan and Korea’s corporate governance reforms, capital flight away from China into neighbouring countries and Australia’s active M&A market.
Why invest?
Offers exposure to a fast-growing, less-crowded opportunity set
The Pan-Asian scope of the strategy provides a wide range of regions, themes and corporate events to invest in. The team maintains a focus on liquidity, allowing them the flexibility to capitalise on market dislocations when they arise.
Diversification benefits
Pictet Asset Management’s Lotus has a low correlation to equity indices,fixed income, and to other Hedge Fund strategies. It can therefore offer diversification benefits to a range of portfolios.
Downside protection in dislocated markets
The strategy is market neutral and harnesses opportunities created by volatility. It takes an all-weather approach and aims to generate alpha in both up and down markets. It aims to achieve high single digit returns with mid-single digit volatility, whilst preserving capital through disciplined risk management.
An enhanced approach to portfolio construction
The strategy utilises proprietary data models to build the portfolio.
The team systematically screens the investment universe for
opportunities and announcements, creating a scorecard allowing the team to quickly analyse transactions and determine if they warrant further investigation. This is complemented by rigorous, analysis of companies and situations.
Managed by an experienced, Singapore based team
The team combines portfolio construction and trading skills, quantitative expertise with private equity and investment banking experience. The cognitive diversity of the team helps to achieve more efficient decision making.
The team draws on an extensive network of industry and research contacts for idea generation or advice on specific situations.
Pictet Asset Management has a proven track record in hedge fund investing since 2004
The strategy is the latest addition to Pictet Asset Management’s USD 7.3bn + Total Return fund range* and benefits from the resources of one of Europe’s leading hedge fund managers. The lead portfolio manager has been successfully managing the same strategy for over 9 years and has been investing in Asian markets for over 20 years.
Why M&A opportunities are so plentiful in Asia
In a recent article, Jon Withaar, Head of Asia Special Situations at
Pictet AM, explains why Asia offers up rich opportunities for equity
investors focused on corporate events and special situations.
* Source: Pictet Asset Management, as at 30.04.2024
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