The Fund

The Pelham Blue Fund, a pure alpha event driven hedge fund, seeks to capitalize on artificial mispricings and short term volatility in the market. We aim for double digit percentage returns on a per annum basis. 

Due to the mandate of the fund, the returns are purely capital gains-based. This means we do not derive income from stock dividends. 

The fund's gain is represented on a percentage basis year-to-date. The following is the fund's performance for 2018.

For simplification, what you see in each time period below represents the year-to-date (YTD) gains for both the fund and the KLCI.

 We invest and trade the following themes: 

1) Medium term investing, fundamentals backed.
2) Short term volatility trading (shares and warrants).
3) Special situations (takeover, M&A, corporate exercises, and market moving news).
4) Index linked warrants (calls and puts).

Our strategy changes depending on market conditions. Our background is primarily in deep dive fundamental analysis but oftentimes we would trade purely on the strength of price and volume activity. We have also identified market signals that are unique to Bursa Malaysia after many years of obsessive research and market observations.

As you may have seen, we do share some of these signals on this blog, but that is just one part of the equation. Knowing how to trade, when to trade, position sizing, discretionary trading, and portfolio analysis come with experience.

Our trading skills and collection of market signals is the fund's competitive advantage. We also believe that we can outperform the market during bad times - this is where our experience in trading put warrants come in handy.

Because of the higher risk profile, the fund aims to achieve annual gains of 15-20%. Aside from absolute value, we also benchmark ourselves against the KLCI's annual performance and yields from Amanah Saham Bumiputera (which is essentially the ultimate risk-free yield for Malaysian mutual funds).

Our trading methods are unconventional and thus considered more risky. We can easily buy a call warrant, put warrant, or short-tenured loan shares if they suit our trading viewpoint. We can also be 100% in cash if we choose to, giving us complete discretion to trade as we see fit and only during times of opportunity. 

And of course, our trades are documented in thorough detail on this blog.

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