Starting the new year off in a positive direction, LIMMAT CAPITAL Alternative Investments AG was approved by the Swiss Financial Market Supervisory Authority (FINMA) as asset manager of foreign collective schemes on January 3. LIMMAT CAPITAL Alternative Investments AG is an independent FINMA regulated investment management firm in Zurich, Switzerland, specializing in liquid long/short equity and balanced fund strategies. The FINMA license marks another important step towards becoming an internationally recognized multi-disciplinary investment management firm and alternative investment platform.
“Our operational infrastructure and risk management allows us to add new strategies and carve out funds to our platform, while continuing to deliver tremendous value to our portfolio managers and investors,” said Martin Pacanovsky, CRO and COO of Limmat Capital. “We have developed our proprietary position and risk management software to combine front, risk, middle and back office systems for the entire value chain from trade capture through reconciliation to risk management. “
The software, Integrated Risk Information System or IRIS, provides a backbone to a comprehensive daily portfolio performance report with multiple levels of detail on performance attribution, drawdown analysis as well as an extensive set of risk control measures including limit utilization, concentration, various liquidity analyses, several types of stress tests and more. Furthermore, IRIS facilitates real-time portfolio and risk monitoring through interactive visualizations as well as slice-and-dice data analytics.
Limmat Capital recently delivered profits to the investors for the ninth consecutive year, maintaining a strong risk-adjusted return of 13% p.a. with a maximum draw-down of 5.3%, no down year and a lifetime Sharpe Ratio of 2.0 since inception in 2005. The company’s flagship equity strategy employs a tactical long/short equity trading approach that uses both alpha and beta sources of return. The current strategy assets under management stand at CHF 120 million.
“The FINMA approval as well as nearly a decade of consecutive annual profits made for a wonderful start to 2014 and is a further tribute to our growing business,” Pacanovsky added. “We look forward to sharing our extensive trading and research expertise and working with a diverse range of investors in the years to come.”