Carrhae Capital, the new London-based emerging markets-biased long/short global equity operation led by highly-rated former SAC, HBK and Goldman Sachs man Ali Akay, has made a sure-footed start in its first few months of trading.
Despite a strong rally in equity markets in the first quarter that was less than ideal for Akay’s market-neutral and relative value-based investing approach, the Carrhae Capital fund is up by just over 6% gross (4.5% net) this year to the end of March.
Volatility since inception in mid-December is very low at just 4.5% – compared with index volatility in the mid-teens – while correlation with EM equity benchmarks is also very low, at around 0.3.
Furthermore, a Sharpe ratio of just under 5, although based on only limited data points thus far, and minimal beta in the fund’s returns are consistent with the formidable track...