What is the Tradex Relative Value Fund?
The Tradex Relative Value Fund is a structured-rates hedge fund strategy. The Fund uses a market-neutral, multi-strategy approach to achieve superior risk-adjusted returns. Please describe the market-neutral nature of strategy.
We attempt to hedge out risk factors that we do not want to take and focus on those we seek. Thus, in accordance with our expertise, we strive to hedge interest rate risk while collecting carry and capturing price performance from securitized Agency bonds.
Please describe your multi-strategy approach.
We believe that our multi-strategy fixed-income approach is well equipped to provide superior risk-adjusted returns over a full range of market environments by implementing a duration-neutral combination of prepayment arbitrage, relative value trading and opportunistic investing.
In Prepayment Arbitrage, we attempt to identify opportunities where collateralized Agency bonds are cheap relative to their intrinsic value. We accomplish this by developing a more accurate view on prepayments and the resultant cash flows than what is priced by the market. Given the varying degrees of sophistication across fixed-income investors with differing objectives and constraints, those with superior models and market experience are often presented with lasting opportunities to capture returns.
Relative Value Trading in Agency pass-through securities is a source of alpha in very liquid fixed-income securities. These assets, which are second in liquidity only to US Treasuries, can be arbitraged via econometric mean-reversion strategies to produce high-conviction, short-term trades that last from days to weeks.
Opportunistic Investments may be the result of broad dislocations as seen during the Great Recession and the Great Recovery. Many fund structures limit investment strategies and leave money on the table when outsized opportunities occur. Given this reality, we designed the strategy to take advantage of such dislocations. Due to the uncertainty seen in markets today, this sleeve should augment return for our investors.
Please provide us with some background on the Portfolio Manager.
In 2014, Jeff Kong founded Tradex Global Advisory Services, for which he directs all investment activity. Prior to Tradex, Jeff was a Portfolio Manager at San Francisco-based Passport Capital. Jeff started his hedge fund career at Structured Portfolio Management, where, from 2000 to 2010, he managed the $1B flagship SPM fund, Structured Servicing Holdings (SSH) that annualized 23.56% net during his tenure as Portfolio Manager. Bloomberg Markets ranked SSH the #1 Large Hedge Fund in the world and SSH placed #8 in Barron’s Top 100 Hedge Fund List. Jeff is a member of the Association of Asian American Investment Managers.
Whatever the current market conditions are, why do prospective clients need to be confident that their manager is able to best serve their unique needs, provide goal-oriented investment management solutions and deliver strategies in order to preserve and prudently grow their wealth through all economic and market cycles?
Our experienced team works closely with each client. We tailor our investment management practices to the specific risk tolerance and investment objectives of both our institutional and individual investors.
We also accommodate our clients by establishing investment vehicles that fit their unique requirements in terms of SMAs. Investor relations is a central part of our business, and our team has decades of experience meeting the special needs of our clients who represent a variety of investor profiles.
How can your company assist in achieving meaningful investment results through the disciplined application of time-tested methods of analysis?
Our Portfolio Manager, Jeff Kong, has weathered many business cycles over his 25-year career in structured-rates that began at Greenwich Capital in the 1980’s. Jeff is regarded as a pioneer of the prepayment arbitrage strategy. Over his career, he developed and refined the multi-strategy approach to fixed-income investing that is utilized in the Tradex Relative Value Fund. This evergreen investment approach is unique in that it is interest rate neutral and it has the potential to profit from rate uncertainty. Jeff’s investment management skill has been tried and proven in the most extreme market conditions, and he has consistently delivered stable returns to investors.
What do you believe contributes towards successful investment outcomes?
A disciplined approach to risk management is the key to successful investing. Our investment team has built a robust and rigorous system to maintain our intended exposures precisely, at both the portfolio and asset levels. As part of our market-neutral approach, we attempt to hedge out the risks we wish to avoid while managing those risks that we seek. We strictly limit our exposure to our areas of expertise, taking prudent positions based on structured rate fundamentals and spread risk. We believe this focus is an important driver of long-term performance.
Company: The Tradex Group
Name: Jeff Kong
Email: [email protected],
Web Address: http://www.thetradexgroup.com/
Blog Address: http://thetradexgroup.blogspot.com/
Address: 35 Mason St, Greenwich, CT 06830
Telephone: (203) 863-1500