Ayaltis Funds - January 2018 Estimates

 
 
 
 
 
 
 
 
Ayaltis Funds - January 2018 Estimates
 

Dear Investor,

We are pleased to send you the estimated NAVs & Performances for January 2018 with a performance of +1.17% in USD for Class B.

Save the Date: Ayaltis will host a series of lunch presentations in several cities starting March 2018.

8 March 2018: Zurich
9 March 2018: Geneva
14 March 2018: Lugano
28 March 2018: Hong Kong
More cities and a separate invitation with a detailed agenda will follow shortly.

 

January 2018 Flash Commentary

January was another good month for our portfolios. Equity markets extended the post-tax reform rally supported by a surprising weak dollar despite the continuous surge of mid-term interest rates. The overall yield curve flattened as longer-term yields remained relatively tame, bringing up the “animal spirits” for the rally. This market environment supported most of our managers to deliver positive returns with close to zero exposure to the market rally. Almost all our managers performed positively last month while one performance detractor was in our volatility bucket. The relentless rally saw a decoupling between volatility and the underlying stock market of the S&P 500 that hurt our exposure. The apparent calm shown by the US equity market despite the rise of interest rates is particularly worrisome. A more decisive curve steepening may suddenly change the rosy picture that “comfortably numbed” market participants have been getting used to. The markets are ripe for more volatility and we continue to strive for better protection for our portfolio for when (not if) the overleveraged supposedly protected investment programs begin rushing to the exit.

As markets start correcting, levered risk parity strategies need to sell equities, adding fuel to the sell-off, while short VIX ETFs, as they get closer to their knock-out levels and hence liquidation, have to buy back substantial amounts of VIX futures. All those features can trigger an acceleration of the sell-off seen in late January and early February, leading to increased apprehension. A combination of weak dollar, higher oil price and overvalued assets may raise inflation expectations potentially triggering unpredictable scenarios. We are excited about our current portfolio composition and are confident that our managers will find idiosyncratic catalysts in these uncertain times irrespective of the overall market.
 

 

Estimate NAVs and Performance
as of January 31, 2018

January

YTD 2018

NAV

2017

2016

2015

12 Months Rolling Return

12 Months Rolling Volatility

Liquidity

PDF

Areca Value Discovery B USD

1.17%

1.17%

127.00

7.72%

-2.57%

2.30%

8.41%

1.73%

Quarterly

Link

Areca Value Discovery B CHF

0.98%

0.98%

119.99

5.45%

-4.56%

0.71%

6.22%

1.80%

Quarterly

Areca Value Discovery B EUR

1.12%

1.12%

121.94

5.99%

-4.01%

1.76%

6.87%

1.87%

Quarterly

 

 

 

 

 

 

 

 

 

 

 

Areca Azure C USD

0.72%

0.72%

105.34

5.48%

-0.84%

-

-

-

Monthly

Link

 

 

 

 

 

 

 

 

 

 

 

Narrapuno SPC - Spectrum A USD
(formerly Acantias Offshore Fund)

1.19%

1.19%

1,535.09

8.27%

-1.67%

3.72%

8.92%

1.58%

Quarterly

Link

Narrapuno SPC - Spectrum A CHF
(formerly Acantias Offshore Fund)

1.02%

1.02%

1,399.81

5.53%

-3.82%

2.16%

6.27%

1.54%

Quarterly

This month’s cut-off date for subscriptions is 21 February 2018 at 3pm.                                                                                                                                                  Best regards,
Son Nguyen
_____________________________________________
Son Nguyen, CAIA
 
Ayaltis AG
Bleicherweg 19
8002 Zürich
Switzerland
Direct: +41 43 501 37 62
Mobile: +41 78 610 65 00
 

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