14th Jan 2020 - 4:32pm
Discretionary macro shop H2O bounces back
By Hugh Leask | 14/01/2020 - 4:32pm
- H2OAsset Management, Bruno Crastes’ bond-focused discretionary macro hedge fund, which this year marks its tenth anniversary, has posted sterling year-end gains after facing investor pressure this past summer.
- Flagship fund H2O Adagio, which manages about EUR4.6 billion in assets, made 1.2 per cent during December, leading it to a 7.6 per cent annual gain. Adagio launched in August 2010, with a focus on sovereign bonds, credit and currencies.
- Meanwhile, H2O Allegro, which launched in March 2011 and has a fund AUM of EUR1.5 billion, gained an eye-catching 39.56 per cent over the 12-month period to the end of December. The absolute return strategy invests in a range of fixed income products, including sovereign debt, investment grade credit, high yield and currencies.
- Adagio and Allegro were two of the six H20 funds that came under pressure this past summer following concerns over certain illiquid bond positions.
- In June, the global macro multi-strategy manager – which was founded by Crastes and Vincent Chailley in 2010, with backing from Natixis Asset Management – suffered an estimated EUR8 billion of outflows across a range of strategies due to investor fears surrounding private bond holdings in several of its UCITS funds.
- Adagio lost 1.2 per cent in June before gaining 2.8 per cent the following month, while Allegro slipped 2.9 per cent in June, then rebounded more than 12 per cent in July.
Results & performance