Fund: H2O Multibonds HCHF-R
In the lead for the global bonds space is Citywire AA-rated Bruno Crastes, who has consistently outperformed his peers since July 2013.
Launched in 2011, the fund has $992.2 in assets under management as of the of June 2016.
Since February 2016, the management team has put a lot more focus on technical factors, looking at positioning and especially steering clear of crowded trades.
The fund’s largest single holding with a weighting of 20.97% is Italian bonds with a long maturity, yielding 4.75%.
The long/short fund has also benefited from its long exposure to European peripheral debt as yields on Italian, Greek, Portuguese and Spanish government bonds have been progressively converging towards core European bonds.
In turn, the fund holds long-term strategic positions as well as trades on the foreign exchange markets.
In terms of fundamentals, Crastes sees negative yields as temporary and dependent upon the Federal Reserve Bank’s decision to normalise its monetary policy.