Hedge Fund
AlphaBee Asset Management - April 2021 Newsletter
AlphaBee Multi Arbitrage
April 2021
Dear Team,
The net performance for the AlphaBee Multi Arbitrage Fund class A USD is +1.59% in April.
In April, President Biden unveiled the USD 1.8 trillion "American Families Plan" which includes free community college, federal paid family leave, and extended tax credits. It brings Biden's total proposed spending tally to USD 6 trillion and could be paid for by tax hikes on the wealthy.
The European Systemic Risk Board, under the supervision of the ECB, warned of a "tsunami" of corporate insolvencies due to high corporate debt levels once government support is withdrawn. For the time being, the European economy seems in good shape however: Manufacturing PMI in the euro area rose in April to highest level since 1997 and Germany's inflation rose above 2% for the first time in two years.
In the USA, average hourly earnings for private-sector employees rose by 21 cents to USD 30.17 in April, as companies are struggling to hire. US consumer prices leapt 4.2% in April, the fastest since 2008 and prices have risen or about to rise for some household staples: P&G announced price hikes from 5% to 9% on some of its products, citing costs for raw materials and transportation which have gone up. Other companies such as General Mills (food) Kimberly-Clark (staples) are following suit with expected price hikes on some of its products, citing increasing input costs as well.
Commodity markets in metals, agriculture and oil are now showing the steepest backwardation in more than 14 years, signalling how strong the world’s demand is for raw materials and how tight supplies are.
Prices for everything from copper to oil continued to move up in April, as the largest economies rebound from the pandemic amid massive government stimulus spending. China bought record amounts of corn, the price of which rose above USD 7 for the first time in eight years.
The AlphaBee Multi Arbitrage Fund’s Equity Long Short strategies more than caught up the March performance with positive returns both on the long and the short equity book. Commodity Arbitrage strategies continued their good run. Equity Event Arbitrage strategies profited from some positive seasonal factors whereas both Equity Statistical Arbitrage strategies and Managed Futures faced a lack of arbitrage opportunities and volatility respectively, in a strong directional market environment and falling volatility in April.
Hereunder the net performances, NAVs and links to open all share classes' fact sheets:
MTD
YTD
Sharpe Ratio ITD
NAVs
1.59%
1.89%
2,1
120.62380
1.50%
1.82%
1,8
113.52632
1.48%
1.58%
1,7
111.80628
1.60%
1.88%
2,0
115.91969
The share classes in EUR, CHF and GBP, respectively hedged with passive overlay strategies, are soft-closed for new investment. If you have an interest for those classes please contact us.
Please find our fund portal and document repository The Protect & Grow investment philosophy of the AlphaBee Multi Arbitrage Fund:
Protect capital:
α Diversification among the invested strategies to form a low volatility portfolio
α Independence of the portfolio to stock and bond markets' movements
α Active portfolio construction to benefit from higher financial market volatility
α Mitigation of the portfolio's tail risks
α Monthly mark-to-market liquidity and reporting in an audited fund
Grow capital:
α Proven expertise in the sourcing, analysis and allocation of alpha strategies
α Access to profitable and often capacity-constrained investment strategies
α Efficient investment timing to benefit from financial advantages on strategies
α Strong relationships with arbitrageurs in the dynamic "ecosystem of strategies"
α Strategy allocation through proven, proprietary quantitative models
Do not hesitate to come back to us in case of questions or need for further information.
With best regards,
AlphaBee Asset Management
30, Dernier Sol,
L-2543 Luxembourg
Fix +352 20 301 570
Fax : +352 24 61 1041