Executive Summary

Haven Cove runs two core liquid strategies split between Credit and Equity which target consistent, attractive absolute returns over the long run, with low volatility & low drawdowns, generating performance that aims to be uncorrelated with the general market.

INVESTMENT STRATEGY

The following strategies are utilised:

Credit: The Credit Strategy constructs a net long European investment grade credit portfolio via Credit Default Swap (“CDS”) tranches & indices, hedged with options. The strategy targets a persistent structural pricing dislocation in the CDS market which is most pronounced & consistent in the European investment grade space.
The strategy is formulaic and repeatable, aiming to isolate this dislocation using a prescriptive method within fixed risk limits. It generates positive carry & theta
with options providing positive convexity to hedge tail events and components  of embedded 1st loss protection & single-names hedges to manage default risk.

Equities: The Equity Strategies comprise a Special Situations strategy (high-conviction positions targeting pricing dislocations in the European equities/derivative markets), and a Systematic Strategy (signal driven relative value strategies in European main indices based on statistical indicators). Together these strategies aim to generate additional alpha for the Fund, from a highly liquid & diversifies portfolio, in a manner which is uncorrelated with the Credit Strategy and general equity indices.

TEAM

Haven Cove brings together the best strategy ideas & track record of the two founding partners, Nick Greenwood (CIO) and Ashley Hudd (CEO) who have substantial experience in managing capital across multi-strategies, having worked in partnership for 12 years.

PORTFOLIO

Haven Cove was launched in 2018 and has averaged an annualised performance of 8%, an annualised Sharpe of 2.65 and a maximum draw down of 5% (daily) and 3.4% (monthly). The Fund’s past 12 months, and long-term target is an average annualised return of 10% with a Sharpe ration over 2.

RISK

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