This week, the second fund of Mathematica Capital Partners named Zenith commenced operations, which the founders of this company presented last week and shared with investors the vision behind their funds.
– The philosophy of our company is to provide investors with the best asset management service through funds that have a long-term mandate and an active approach. Zenith is precisely such a fund, which is a comprehensive risk-on strategy – stated Mathematica Capital Partners on their social media.
Let us recall that Mathematica Capital Partners was founded at the beginning of last year by Goran Dubček and Marin Onorato. As the name of the fund suggests, this duo uses mathematical models to avoid stock market situations that will lead to losses. Namely, Marin Onorato graduated in mathematics from the University of Zagreb’s Faculty of Science, while Goran Dubček graduated from the Faculty of Electrical Engineering and Computing. Both are also holders of the CFA charter. Their career paths brought them together at InterCapital under the mentorship of Daniel Nevidal. Dubček was responsible for managing alternative funds there, while Onorato traded on the company’s own account. After eight years at InterCapital, they decided to establish Mathematica Capital Partners.
To learn more about this fund, we spoke with Onorato, who confirmed that the Zenith fund is comprehensive risk-on portfolio. In other words, the fund is based on investing in riskier assets to achieve higher potential returns.
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– This is a fund whose goal is to achieve exposure to risky asset classes with an optimized risk-return ratio. Zenith is positively correlated with stocks, but in addition to direct investments in stocks, bonds, and commodities, it also targets alternative risk premiums through strategies such as selling options (i.e., volatility risk premia) and short selling (i.e., short VIX) – says Onorato.
The co-founder of this fund tells us that the initial reactions are extremely positive, both from private and institutional investors.
– Since this is an alternative fund with a private offering, only qualified and professional investors can invest in it – explains Onorato.
The strategy of the new fund, he added, is not limited to a specific sector or geography, and they target all opportunities they believe have an asymmetric risk-return ratio within a risk-on environment. The majority of the fund is invested in Western markets that have a liquid derivatives market, thus providing numerous opportunities.
However, when asked what they expect from this fund in a year, Onorato claims it is difficult to say, but he added that their first fund, Continuum, approached €10 million in net assets in its first year.
– The strategy of Zenith is such that every investor should invest a portion of their funds allocated to stocks, at least that is the practice in the West – says Onorato, adding that, given its positive correlation with the stock market, Zenith will be affected by greater turbulence in the stock markets.
– The goal is to maximize the probability of achieving superior returns, measured absolutely and risk-adjusted. The fund’s strategy is such that the portfolio profits from volatile markets, and it can also provide a good return in case the markets stagnate. On the other hand, our fund Continuum is of a more conservative nature and is not necessarily correlated with the state of the stock markets, meaning it can also be negatively exposed to stocks and earn during declines – concludes Onorato.
