2016's Most Innovative Hedge Fund Manager, Bermuda
Equilibria Capital is a highly innovative asset management company focused on managing investment funds and separate accounts for private and institutional clients. Consistently delivering results for their clients, the firm’s funds and portfolios invest globally across multiple asset classes in both public and private markets.
Avance Global is Equilibria’s flagship fund. The Fund, which invests globally across different asset classes has delivered annualised returns of 5.8% since its inception in 2003 with a volatility of only 6.2% and has only had two years of negative returns. Including 2016, the fund has accumulated five consecutive years of positive returns, despite challenging markets and a prolonged period of underperformance for value-oriented investment styles.
One of the key factors that helps to explain Equilibria’s strong track record and ongoing success is its flexibility. Avance Global, for example, takes a benchmark-free approach to investing which offers its clients the widest array of opportunities and an unrestricted approach to risk management.
Avance Global can invest anywhere in the world, anywhere in a company’s capital structure (providing there is a good degree of liquidity) and across any currency. It is free from benchmark tracking and has the flexibility to have very large cash weightings if the manager believes that is the best allocation of capital.
The Fund’s managers believe that long-term investing offers the best opportunities but that tactical moves can also add significant value in the short term. Like any successful company, Equilibria is continuously looking at new ways to innovate and develop the services and products that it offers its clients. Equilibria is constantly trying to identify and exploit market inefficiencies, and has the willingness to create specific niche investment vehicles to invest in the opportunities that it identifies.
For example, in 2014 Equilibria launched the EQC Agrifund, a global food and agriculture-themed fund with an absolute return bias. The fund invests in public and private markets, liquid alternatives and real assets in the agriculture space, aiming to capitalise on what the manager believes are unequivocal tailwinds for the sector over the next 1030 years. Again, the results speak for themselves, as the EQC Agrifund has achieved annualised returns of 4.0% since its inception with a Sharpe ratio of 1.56.
This is just one of the examples where Equilibria has diversified its services. The Firm believes that providing alternative and innovative investment strategies is crucial in the asset management industry. With the S&P 500 trading at over 17x forward earnings (an expensive level by historical standards), and with over $9 trillion of negativeyielding bonds outstanding globally, Equilibria’s
founders believe that investors should be thinking about risk optimisation and looking for alternative investments opportunities that are able to offer consistent alpha with a focus on capital preservation.
Equilibria’s people are the key to its success. The firm is composed of a highly experienced, cohesive, tested team with a superior track record. Equilibria’s key decision makers are Morgan Stanley veterans with over 20 of asset management and investment banking experience. The Company’s founders have been working together for almost 15 years and, as such, are well equipped to meet the ongoing challenges that the investment industry presents as the Firm continues to build on its successes in 2016 and beyond.
Company: Equilibria Capital Management Ltd.
Contacts: Daniel Tafur / Fabio Lopez Ceron
Telephone: 1 441 295 2233