Australia-based Signature Capital Investments Limited announced on November 27th that the firm was planning a significant rebalancing of its fund portfolio. Signature Capital Investments is a “fund of funds” whose objective is to “generate superior returns over the long term across all market conditions via exposure to the performance of a diversified portfolio of international absolute return funds.”
Signature Capital Investments unaudited Net Tangible Asset value
In its recent press release, the firm announced that the unaudited Net Tangible Asset (NTA) backing per share for Signature Capital Investments Limited as of October 31, 2014 was .4018 (down 0.29% from .4031 as of Sept. 31).
The NTA as of September 30, 2014 and October 31, 2014 includes the final dividend of 2.3 cents per share that was declared on September 30, 2014 and was paid on November 14, 2014.
Investment portfolio changes
The statement from Signature Capital Investments noted that an ongoing strategic review of the fund’s portfolio has led to several changes in current investment holdings. Of note, redemptions are currently in process for King Street Europe, Canyon Balanced Fund and Balestra Global. All of these positions are expected to be fully exited by mid-2015.
The firm also recently invested in Brevan Howard Fund Ltd, a feeder fund into the Brevan Howard Master Fund Limited. The initial investment was made in September 2014. Brevan Howard Master Fund Limited is a global macro/relative value absolute return fund. The fund launched in 2003, and has delivered an annualized return since inception of 10.1%. It has produced positive full year returns since inception, with no negative rolling 12-month period. Brevan Howard manages around US $25 billion in the Brevan Howard Master Fund strategy and US $35 billion in total.
Signature Capital Investments also recently undertook an investment in Elliott International Ltd. Elliott utilizes a multi-strategy trading approach with a wide range of strategies, including performing debt, distressed securities, hedge/arbitrage positions, equity-oriented positions, basis trading, portfolio volatility protection positions and real estate-related securities positions. Elliott International Limited has produced a net return of 12.8% p.a. since December 1994. Going back to 1977, Elliott Associates, L.P. has produced a net 14.0% p.a., compared to 11.3% for the S&P 500, and a standard deviation of quarterly returns of only 5.7%, compared to 16.2% for the S&P 500. Elliot has only suffered two down years in its 37-year history. The firm manages nearly US $25 billion in assets.
The current investments of Signature based on unaudited market value estimates as of October 31 2014 include: