A Combination of Convergence and Relative Value Strategies
Strategy: A combination of convergence and relative value strategies. Taking long and offsetting short positions in instruments that are close substitutes.
Fee structure: Base Fee of ½% per quarter of the NAV plus an incentive fee of 25% of the yearly increase in NAV. Incentive fee was subject to a ‘high water mark’, a year on year difference between the current EOY NAV and the highest NAV recorded at any prior year end. This meant that the fund first had to recover losses before any incentive fee would be paid.
Strategy: A combination of convergence and relative value strategies. Taking long and offsetting short positions in instruments that are close substitutes.
Fee structure: Base Fee of ½% per quarter of the NAV plus an incentive fee of 25% of the yearly increase in NAV. Incentive fee was subject to a ‘high water mark’, a year on year difference between the current EOY NAV and the highest NAV recorded at any prior year end. This meant that the fund first had to recover losses before any incentive fee would be paid.
Strategy: A combination of convergence and relative value strategies. Taking long and offsetting short positions in instruments that are close substitutes.
Fee structure: Base Fee of ½% per quarter of the NAV plus an incentive fee of 25% of the yearly increase in NAV. Incentive fee was subject to a ‘high water mark’, a year on year difference between the current EOY NAV and the highest NAV recorded at any prior year end. This meant that the fund first had to recover losses before any incentive fee would be paid.