Who we are
and where we are going
The Arete Fund has a mandate to invest predominantly in hard currency emerging market corporate and sovereign bonds. The fund has a strong legacy orientation towards Eastern Europe. A significant portion of Arete’s portfolio is invested in high yield bonds. In addition, the fund invests in distressed and special situation debt and actively engages in restructuring and turnaround processes.
The Arete Fund follows a value-oriented strategy and aims at generating attractive absolute returns throughout the credit cycle, without the constraints of a benchmark. The investment process combines top-down market analysis with bottom-up credit analysis and strives to exploit temporary pricing inefficiencies and market overreactions in fixed income markets. As part of such strategy, the fund may at times hold large, concentrated positions in a single country, sector or company.
The rigor and flexibility of Arete’s investment approach has afforded the fund superior returns in the past years.
Mercurius actively manages the fund with a combination of top-down and bottom-up approaches. The team seeks superior risk-adjusted returns by investing in creditworthy companies in jurisdictions and sectors identified by top-down analysis. By utilizing market inefficiencies, leveraging the fund's expertise with distressed situations, and combining multiple asset classes along the capital structure, Mercurius achieves enhanced absolute returns, while adequately protecting against losses.
The core portfolio evolves around high yielding corporate bonds from Latin America and is effectively complemented by investments from other asset classes or in other jurisdictions, which ensures a balanced asset allocation.
Mercurius has and will actively participate in ad-hoc committees and engage in restructurings.