ABOUT US
WHAT IS APEIRON GLOBAL MACRO FUND?
Apeiron Global Macro Fund (Apeiron) is a private, Australian domiciled and Caymans (available from October 2008) regulated Absolute Return Fund, structured to take advantage of imbalances in global markets in order to generate consistent and superior returns over time for its investors. It supports a medium term investment horizon.
WHAT DOES APEIRON DO?
The Fund utilises directional strategies by investing in derivatives across foreign exchange, equity, interest rate and commodity markets.
It defines investment themes within a fundamental economic framework. Within these themes, Apeiron seeks to identify markets that are significantly over or undervalued. It then develops trading strategies aimed at capturing profit opportunities associated with the re-pricing of these markets.
WHAT IS APEIRON'S INVESTMENT OBJECTIVE?
The Fund’s investment objective is to achieve 15% net returns per annum for investors in A Class Units over a rolling three year period (approximately double this return for the “Enhanced Strategy” of B Class Units).
Note: Capital preservation is of primary importance. Therefore Apeiron applies a strict risk management process with the aim of consistently achieving its targeted returns without placing more than 25% of the Fund’s capital in A Class Units at risk and 50% of that in B Class Units.
INVESTMENT PHILOSOPHY
Forecasting
We believe that markets over the long term are governed by certain economic fundamentals, or more simply, by economic common sense.
These fundamentals form the foundation upon which our strategy is built.
Execution
We recognise that crowd psychology plays an important role in determining the short to medium term direction of markets.
At times, this psychology is aligned with the tide of economic fundamentals, and at other times, it swims against it.
We aim to participate in markets where the psychology and the fundamentals are aligned.
Risk Management
Conviction is a double edged sword.
We recognise that our best investments come from the ideas in which we hold the greatest conviction.
However, we also recognise that like our industry peers; our grasp on the future is inherently precarious. This means of course, that the potential for large losses also comes from having strong conviction.
Consequently, whilst all of our investments are made with the strongest expectation of profit, our downside risk is structured on the basis of probable loss.
How this translates into reality is that we are brutal in cutting our losses, and are slow-moving to exit a profitable position.
WHAT DOES APEIRON MEAN?
Apeiron means "without limits or bounds".
It is found in the theory of the unity of opposites, an ancient Greek philosophical concept, which posits that every element is an opposite or is connected to an opposite. It states that the material world is composed by some indefinite, boundless Apeiron from which all elements arose.
Given its infinite nature, the Apeiron is always in a place of balance. It is inclusive of both the yin and the yang, hot and cold, wet and dry, and in a portfolio context - long and short.
From a place of balance, as investors we are able to act decisively when an opportunity presents itself; and when that opportunity is exhausted, we return to balance again.
KEY PERSONNEL
Mr David Hobart B Ec (UQ), B Bus (Banking and Finance - QUT), DFS(FP)
Managing Director, Apeiron Global Macro Fund
David has had considerable experience in trading and investment markets. Over the last 15 years, David has been the Manager of Proprietary Trading for BT Foreign Exchange in Sydney and has been a Senior Proprietary Trader with Macquarie Bank and ABN Amro. This involved active trading in foreign exchange, commodities, interest rate and equities markets, and managing a diverse team of traders using a variety of systems and trading strategies.
Starting his work with BT trading foreign exchange (FX) in 1994, David continued developing his passion for understanding how macroeconomic developments impact on markets. The FX markets are influenced by the flow of funds into and out of a country's bond, stock and property markets, as well as trade and speculative flows. Understanding how one economic indicator influenced a variety of markets was critical to his success as an FX trader. This logically led to his move into trading the fixed income, commodities and equities markets while managing the FX Proprietary Trading Desk for BT. David was highly successful at BT and became the most profitable trader in BT's Australian FX department. David then moved to work with both Macquarie Bank and ABN Amro in similar roles before trading his own capital.
Mr Brook Monahan B Ag Sc (Hons)
Director, Apeiron Global Macro Fund
Managing Director, Redwood Capital Group Ltd.
Brook has substantial experience in many areas of business and finance. Starting his career in corporate treasury, Brook gained expertise in commodity price hedging, risk management and human resource management. Brook then built and ran a successful business coaching and consulting company, working with businesses across a diverse range of industry sectors. This gave him a solid understanding of business fundamentals and led to him developing a number of other successful businesses.
Brook is the Managing Director and founder of Redwood Capital Group Ltd, a boutique Funds Management Company in Australia (AFSL No. 289327). Within this group, Brook has been responsible for successfully building several registered funds in the last three years with investment strategies ranging from mortgage debt to foreign exchange and global macro. With his strong business background, he brings his ability to successfully manage the business of operating a fund.
John Sharpe
Risk Manager, Apeiron Global Macro Fund
Responsible Officer, Redwood Capital Group Ltd
John has 20 years experience in trading financial markets, having worked for Bank Brussels Lambert, Bank of America, National Australia Bank and ABN Amro in senior trading and management roles. John brings a wealth of knowledge and experience to the team at Redwood Capital.
In his role as Responsible Officer, John is the External Risk Manager to Apeiron overseeing its Investment and Risk management processes.
