Approach
Our RV strategies target a wide spectrum of market inefficiencies, identified using a combination of bottom-up fundamental analysis and quantitative techniques, favouring situations where a catalyst exists to drive convergence.
Strategies
EVENT-DRIVEN
Trades mispricings that result from corporate events like M&A, spinoffs, bankruptcies, capital restructuring, and management or operational changes.
Equity trading
Targets pricing discrepancies between related equities, trading directly in the shares or the derivative options and futures contracts.
Volatility
Uses options and other derivatives to trade the differences in volatility between the related, underlying assets.
CONVERTS
Focus on convertible bond arbitrage, where we combine fundamental and quantitative analysis with the mathematical assessment of equity, volatility and credit valuation.
We allocate capital opportunistically between the portfolio managers on our platform to maximise returns for our clients, using correlation-aware construction to create asymmetric risk/reward profiles.
Portfolio
Construction
Risk Management
Every RV investment thesis at DLD is built on a strong risk management foundation.
1
Individual strategies have customised risk parameters that align trading with our objectives and minimise the correlation between strategies.
2
Positions are managed as a bundle, isolating the premium or spread we are trying to capture.
3
A centre-book is used to limit portfolio risk factors and elevate risk-adjusted returns by capturing esoteric, near-term RV opportunities.
Infrastructure
Our platform is replete with efficient trading, portfolio management, and risk management tools that adapt to the needs of our PMs. We have built a plug-and-play environment where our portfolio management teams can focus on what matters: capturing relative value opportunities