Serra's Algebris Launches New Macro Credit Fund

Jul 11 2016 | 11:20pm ET

Global asset management firm Algebris has launched a new macro credit fund that will be managed by former RBS credit specialist Alberto Gallo and is designed specifically for a world of negative interest rates.

The new fund will begin trading on July 19, according to the company. It will combine top-down macro research, bottom-up balance sheet analysis and quantitative risk management in an effort to generate superior risk-adjusted returns in the current environment, which is characterized by negative rates, reduced trading liquidity and increased economic and political volatility. 

The fund will invest in government, corporate and bank debt, employing a range of directional and relative-value strategies in order to capture the best opportunities globally, according to the company. 

“The asset management industry isn’t prepared to live with ‘QE-infinity’,” said Gallo in a statement. “Most assets sit in benchmark-hugging strategies, offering increasingly less yield versus management fees. The investor reaction is typically to buy riskier products, like high-yield corporate funds, but this also means taking concentrated, undiversified risks. We aim to offer a better solution.” 

“[Our] strategy will provide investors with a new, flexible approach to navigate the yield desert we live in,” said COO Alex Lasagna. “The fund targets a volatility of 5% and aims at generating 6-7% returns.”

Gallo joined London-based Algebris in April 2016 as a partner responsible for the firm’s global macro strategies. Beforehand, he led the global macro credit research team at RBS, was a global credit strategist at Goldman Sachs in New York, and ran the global credit derivatives strategy team at Bear Stearns.

Founded by CEPO Davide Serra in 2006, Algebris Investments is a global asset management company founded managing some $4.3billion across equity, credit, private debt/NPL and global macro strategies. 

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