We manage a Long/Short fund (Fourth Sail Long/Short) and an Absolute Return fund (Fourth Sail Discovery). We believe capacity discipline is critical to the proper management of both vehicles, ensuring that we can take meaningful exposures across the region and continue to focus primarily on small and mid-cap companies.
Fourth Sail Long/Short (launched: February 1, 2014)
- The fund strives to generate positive returns every year by carefully building asymmetry in the long and short book. Protecting capital and compounding returns carefully over time is the surest way to achieve this objective.
- In general, the fund only takes meaningful net long exposure when we believe both domestic and global risks are low. This means the fund’s net exposure will be low in most years. In a normal market environment, we aim to have net exposure between +20% and +40%, and gross exposure between 150% and 300%. In unusual scenarios where valuations are extremely low, we may consider veering higher than 40% net.
Fourth Sail Discovery (launched March 1, 2019)
- We believe that over a full cycle, there is excess return available to investors with an increased appetite for volatility and liquidity risk. The Discovery fund seeks to exploit those opportunities by running a concentrated portfolio of high conviction positions.
- Still, we aim to protect capital in difficult environments. This is why the fund has the ability to draw down or return capital to our investors when warranted, hedge FX and invest across the capital structure.
- The fund carries a net exposure of 85-100% in most market conditions.
FOURTH SAIL FUNDS
We manage a Long/Short fund (Fourth Sail Long/Short) and an Absolute Return fund (Fourth Sail Discovery). We believe capacity discipline is critical to the proper management of both vehicles, ensuring that we can take meaningful exposures across the region and continue to focus primarily on small and mid-cap companies.
Fourth Sail Long/Short (launched: February 1, 2014)
- The fund strives to generate positive returns every year by carefully building asymmetry in the long and short book. Protecting capital and compounding returns carefully over time is the surest way to achieve this objective.
- In general, the fund only takes meaningful net long exposure when we believe both domestic and global risks are low. This means the fund’s net exposure will be low in most years. In a normal market environment, we aim to have net exposure between +20% and +40%, and gross exposure between 150% and 300%. In unusual scenarios where valuations are extremely low, we may consider veering higher than 40% net.
Fourth Sail Discovery (launched March 1, 2019)
- We believe that over a full cycle, there is excess return available to investors with an increased appetite for volatility and liquidity risk. The Discovery fund seeks to exploit those opportunities by running a concentrated portfolio of high conviction positions.
- Still, we aim to protect capital in difficult environments. This is why the fund has the ability to draw down or return capital to our investors when warranted, hedge FX and invest across the capital structure.
- The fund carries a net exposure of 85-100% in most market conditions.