Key Takeaways
- • Zest North America Pairs Relative is a UCITS V-compliant long/short equity fund managed by Pasquale Corvino, focusing on North American equity markets with an emphasis on pairs trading and relative value strategies.
- • Fee structure consists of 1.50% management fees and 20% performance fees, with a minimum initial investment of €2,500 and subsequent investments of €1,000, available across multiple share classes (EUR, USD, CHF).
- • Fund targets cash plus 10% returns with approximately half the volatility of the S&P 500, pursuing absolute returns through bottom-up stock picking on individual positions rather than index-level exposure.
- • Historical performance shows best 1-year total return of 19.32% with six years of positive returns and three years of negative returns in the track record, demonstrating the cyclical nature of pairs trading strategies.
- • Strategy employs long and short operations primarily on single stocks with residual index exposure, with position sizing designed to eliminate market correlation and provide diversification across the North American equity landscape.
Summary
Zest North America Pairs Relative is a long/short equity hedge fund structured as a UCITS V compliant SICAV (Luxembourg-domiciled), managed by Pasquale Corvino. The fund pursues a bottom-up investment approach focused exclusively on North American equity markets, with a strategic emphasis on relative value trading, specifically pairs trading methodologies.
The fund's investment objective centers on generating consistent absolute returns with capital preservation as a secondary priority. Its stated target is to deliver returns of cash plus 10% while maintaining volatility approximately 50% lower than the S&P 500, positioning it as a moderate-risk alternative to long-only equity exposure. The strategy achieves this through rigorous stock-picking processes that identify mispriced securities across the North American market.
The fund's operational structure reflects professional institutional standards. Management fees are set at 1.50% annually, with a 20% performance fee on positive returns. The minimum initial investment threshold is €2,500, with subsequent investments of €1,000. The fund offers multiple share classes denominated in EUR, USD, and CHF to accommodate institutional and retail investor preferences. Daily trading and valuation cycles ensure liquidity and transparency for investors.
The investment strategy operates primarily through long and short positions in individual stocks, with residual exposure to major indexes. Each position is subject to liquidity and market capitalization requirements, with position weighting calibrated to ensure portfolio diversification and eliminate systematic market correlation. This construction differentiates the fund from traditional long-only strategies, allowing it to generate returns independent of broad market direction.
Historical performance data indicates the strategy has delivered meaningful absolute returns in favorable periods, with a best 1-year total return of 19.32%. The fund's track record shows six years of positive returns and three years of negative returns, reflecting the strategy's sensitivity to market dislocations and the cyclical nature of relative value opportunities in equity markets.
The fund's investment objective centers on generating consistent absolute returns with capital preservation as a secondary priority. Its stated target is to deliver returns of cash plus 10% while maintaining volatility approximately 50% lower than the S&P 500, positioning it as a moderate-risk alternative to long-only equity exposure. The strategy achieves this through rigorous stock-picking processes that identify mispriced securities across the North American market.
The fund's operational structure reflects professional institutional standards. Management fees are set at 1.50% annually, with a 20% performance fee on positive returns. The minimum initial investment threshold is €2,500, with subsequent investments of €1,000. The fund offers multiple share classes denominated in EUR, USD, and CHF to accommodate institutional and retail investor preferences. Daily trading and valuation cycles ensure liquidity and transparency for investors.
The investment strategy operates primarily through long and short positions in individual stocks, with residual exposure to major indexes. Each position is subject to liquidity and market capitalization requirements, with position weighting calibrated to ensure portfolio diversification and eliminate systematic market correlation. This construction differentiates the fund from traditional long-only strategies, allowing it to generate returns independent of broad market direction.
Historical performance data indicates the strategy has delivered meaningful absolute returns in favorable periods, with a best 1-year total return of 19.32%. The fund's track record shows six years of positive returns and three years of negative returns, reflecting the strategy's sensitivity to market dislocations and the cyclical nature of relative value opportunities in equity markets.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.