The global financial crisis was, and continues to be, predominantly a credit crisis. Subprime mortgages in the United States, sovereign credit issues in Europe, indiscriminate corporate lending in Japan 25 years ago, and China’s record credit-fueled expansion. These past, present, and future crises share many common elements. We believe that our multi-cycle experience of analyzing, and investing in credit gives us a differentiated and better vantage point to understand today’s global environment, ongoing monetary and fiscal responses.
- While most macro funds are mostly trend followers, we focus on a fundamental investment process with an awareness of market technicals.
- Most macro funds operate with large size and tight stops. We tend to do the opposite – small size and more latitude to absorb adverse market movements.
- Many large funds suffer from over-diversification. We focus on finding 3-6 concentrated themes and explore different ways of monetizing them.
- We have extensive experience in single name credit and equities; and are thus comfortable analyzing individual names. This often provides us insight into broader economic issues as well as a differentiated way to express macro views.
The Firm provides investment management services to PACS Opportunity Fund LP (“the Fund”), a private investment partnership. The Fund invests exclusively in very liquid assets across equities, fixed income, currencies, and commodities; and aspires to generate high absolute returns with moderate volatility in all macroeconomic environments.