30 september 2020
Our new "Global Convertibles" strategy
We are pleased to announce the launch of our fund SILEX Risk Managed Global Convertibles on September 30, 2020, a high conviction fund invested in international convertible bonds.
The convertible asset class gives investors the opportunity to diversify and to gain exposure to equities with bond-like risk. On a long term basis, convertibles exhibit equity-like returns with half the volatility. The Fund will seek to take advantage of convexity in order to benefit from the parachute effect in the event of an adverse scenario.
The strong increase in global convertible issuances in 2020 (record amount since 2007, twice as much as in 2019) brings new investment ideas and convexity to the existing pool. This is the perfect time to invest.
With interest rates at rock-bottom, it looks difficult to make money in traditional fixed income, especially if the economic recovery takes hold and interest rates start to rise. In that context, bond investors have an opportunity through convertible bonds to benefit from the upside in equities without the associated risks.
The world of convertible bonds is easily accessible when mastered by an expert. Xavier's 25 years of experience, his 11-year track record and strong entrepreneurial spirit make him a key asset to approach the asset class.
The attractiveness of convertible bonds currently enables Xavier to implement a strategy focussing on securities with asymmetric profiles and follow a rigorous process that has been tried and tested for more than 10 years.
Prior to joining SILEX, Xavier Hoche was Head of convertible bonds and dated funds at Oddo Asset Management from 2008 to 2013. He then founded the convertible bond management company AltaRocca AM, backed by the Primonial group. Xavier is a recognised and often-consulted thought-leader in the convertible bond world. He graduated from ISFA in with a degree in actuarial science.