Courtenay Special Situations Fund from Green Ash Partners recorded a +0.1% in October. While the performance was practically flat, it came after three months of underperformance. Currently, the fund stands at +2.9% year-to-date gains. This performance reflects the fund's unique strategy.
The cornerstone of Adrian Courtenay’s strategy is exceptional businesses, both already established and those that are emerging. A The fund boosts its investments with a modest use of leverage. For risk protection, it relies on holding index put options backed by the merger arbitrage yield. The hedge fund is a "cub" of Odey Asset Management.
There are three philosophies laid in place with the current portfolio. The fund seeks rare, high-impact opportunities. It also aims to maximize compounding gains and maintain a positive-carry hedge.
While the fund's recent performance is lower than expected, the manager is confident in his positions and notes that the fundamentals of the holdings are strong with solid earnings reported. Based on that data, Courtenay believes that in time, the portfolio gains will offset the volatility.
Fund Manager Commentary
In October, the fund marked six years since it transferred to Green Ash. In that period, the fund achieved annual gains of +12%. Adrian Courenay found these results satisfactory, but he still holds his ambitions higher. When moving to Green Ash, Courtenay's first goal was to redesign the processes and infrastructure, aiming for maximum investment conviction. This approach did not come as a result of perceived deficiencies with the approach, but rather in an attempt to push the potential to higher levels.
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