Oceana Long Short FIM seeks for absolute returns in the long run derived from investing in Brazilian listed companies. The fund focuses its investments on substantially mispriced firms relative to their intrinsic values, as well as catalysts for value convergence in a horizon of no more than 12 months. Also of the utmost importance is the identification of potential catalysts for our investment thesis, and the assessment of how different developments in sectors or specific companies' may impact the market's perception and consequently the price of different securities. The fund employs four different strategies:
Arbitrage: Relative value trades with securities issued by the same company or group: Common Stocks X Preferred Stocks, Parent Companies X Subsidiaries.
Pair Trades: Relative value trades with securities issued by two or more companies with business in similar activities; usually consists of pair trades between companies in the same sector, subjected to similar exogenous risks
Corporate Events: Opportunistic trades with shares of companies involved or likely to be involved in corporate events, such as control changes, mergers, splits, and incorporations; key concept is the positive asymmetries between potential returns and risks. The fund does not engage in risk arb trades.
Value distortion (Double Alpha): Long and short market neutral portfolio, takes advantage of distortions between share prices and company's intrinsic values.
Oceana, at its discretion, may adopt active collaboration and participation of invested companies' governance, whenever it deems that it will contribute of the fund's investments.
Oceana Long Short FIM began operations on March 15th, 2006 and since its inception has been managed by the equities team currently at Oceana. The AUM and return are published in Brazilian Real.