The Global Arbitrage Fund

‘Give a man a fish and he eats for a day. Teach him to Arbitrage, and he will eat for a lifetime.’ Warren Buffett

Welcome to the TRZ Global Arbitrage Fund (GA Fund). The GA Fund aims to create exciting returns for investors by profiting from ‘pricing inefficiencies’ between pairs of equities or related instruments on different exchanges and through statistical mis-pricing of highly correlated pairs of stocks.

The GA Fund is a diversified, open ended fund offering access to Arbitrage strategies normally restricted to large institutions. The Fund looks to access a combination of arbitrage strategies in order to provide profitable and low volatility returns to investors.

The Fund is offered under a Netherlands-based fund structure and is registered under European AIFMD guidelines. ABN-Amro Clearing Bank serves as the fund’s prime broker for clearing its worldwide arbitrage positions, SGG is the fund’s custodian. The Fund accepts investments in Euro, USD, and GBP.

The Fund has a flexible structure that allows for multiple sub-funds and/or share classes. Through this structure, the Fund can be tailored for investors who require dedicated investment policies or who want to put their investments in a structured mix of products. Together with ABN-Amro Luxembourg, the Fund Manager is also able to offer managed account investment services.

Investment Strategies

The Fund deploys a multitude of arbitrage strategies. Its core active trading strategies, also called deterministic arbitrage, will only trade on profitable spreads that lead to highly or fully hedged market positions. In addition, the Fund operates several algorithmic trading strategies, where a statistical or systematic model monitors for spreads in pairs or groups of financial instruments and takes positions in these instruments when the model predicts a statistical or systematic profit opportunity. Finally, the fund deploys event-based strategies that seek to exploit mis-pricings between securities whose issuers are involved in mergers, divestitures, restructuring or other corporate events.

The deterministic, statistical, systematic, and event-based strategies create various portfolios of arbitraged positions. From a portfolio management point of view, the Fund aims to optimize these positions across the entire trading platform to create a well-balanced, market-neutral portfolio. The emphasis in this approach is on yield enhancing, and hedging certain aspects of securities and positions that the Fund already holds as part of its day-to-day trading operations.

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TRZ Funds

TRZ Funds specialises in arbitrage trading. TRZ’s arbitrage trading strategies have been deployed in a proprietary trading environment since 2004 and derive their competitive edge from an algorithmic trading approach and state-of-the-art trade execution. TRZ has been operating the Global Arbitrage Fund (Bloomberg ID: BBG0074J9LS2) since May 2010, achieving total net return of 85% since inception, with month-on-month positive results. The Fund offers its investors an investment approach that has a low correlation with the performance of traditional asset classes combined with relatively low exposure to market direction.

For the latest Fund Factsheet, please click here

For the latest GAF Monthly Manager Commentary, please click here

To visit the TRZ GAF Website, please click here