Background and history
Founded in 2008 to invest in liquid securities, oversees more than 320 million euros in the Simplify 02 fund and other platforms. The team is made of experienced senior professionals with diverse backgrounds. The management team and style have evolved over the years adapting to market conditions and economic cycles. The asset allocation of the fund is designed to protect capital and maximize the return on specific opportunities as soon as they arise. Over time, the return exceeded 5% pa in EUR with a volatility of less than 1.25% (a Sharpe ratio always larger than 1 and, in many years, in a range between 2 and 3) .
Over the years, we developed several strategies and competencies. This resulted in a vast database of models, algorithm and financials papers that proved their efficacity over time.
The fund strategy can be broken down in 5 most significant periods
1) February 2009 - June 2015. We anticipated the effects of the GFC in 2007 while, in August, we were discussing the start of the fund. In the meantime, we advised our investors to stay cash until end 2008. When the result of the banking bailouts became evident (and VIX correlation with markets signaled a change in the paradigm), we started investing from the newly created fund. As the financial crisis moved to Europe, we capitalized on previous experience and kept the portfolio cash and invested gradually until mid-2012 (+ 39.7%)
2) June 2015 - August 2016. In 2016 we achieved one of the best annual performances we had. We observed that certain factors in the energy market was positioned for a rally and decided to rebalance the portfolio accordingly. (+15.4%)
3) August 2016 - January 2019. Since 2012 adjusted earnings of S&P 500 companies begun diverging from valuations. We concluded that a 1999 scenario looked increasingly likely. We have underestimated the likeliness and the positive anticipating force of the fiscal reform and we have been very conservative. ( -2.7%)
4) January 2019 - December 2019. Market neutral approach with the equity component of the portfolio reduced to a minimum. The FED "mistake" took most investors off guard and turned against risk-taking spoiling the result of the year. Subsequently, the disjunction between financial markets and adjusted earnings became more evident. (-8.8%)
5) December 2019 - Present. Markets at all-time highs have finally reached in a euphoric phase. We positioned ourselves accordingly and, in line with our mandate, we actively managed the risk to minimize drawdowns and take advantage of specific ideas typical of times of crisis. YTD + 2%