Aros Paradigm Fund SICAV – First trading day
Today, 2nd November, is the first trading day of the Aros Paradigm Fund SICAV. After having spent a year building what we believe is the new paradigm of hedge fund structures, we are delighted that we are now ready to execute our investment strategy. The global economy is faced with many challenges over the coming months and years. We look forward to share our view on the financial markets in the upcoming monthly reports.
The first step
Our general view is that the market is fair to attractively priced. However, the recent months of bullish market development have led to the fact that the expected improvement in the economy to a large extent is reflected in the market. As such the risk aversion among investors is at the same level as August 2007.
In the light of a growing optimism and low interest rates this re-pricing can to a large extent be justified. However, we still find great uncertainties in how the economy will fare in the longer term. The real test of sustainability of the market will come when the central banks start to moderate the liquidity they have supplied to the market over the last year.
This view is reflected in the investment strategy where we will have a conservative bias focusing on Danish mortgage and corporate bonds, while 30-35% of the net asset value will be invested in stable high yielding stocks. We expect that the strategy will be implemented over the next 14 days.