AVM Global Opportunity Fund Class D

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Fund Overview

The AVM Global Opportunity Fund follows a global macro investment strategy designed to deliver stable returns with relatively low portfolio volatility. The strategy invests across highly liquid global markets including fixed income, foreign exchange, commodities, and equities, with the goal of generating returns that are largely uncorrelated with traditional equity and bond markets.

The core objective of the fund is capital preservation combined with consistent risk-adjusted returns. Instead of relying on a single asset class, the strategy identifies macroeconomic trends and expresses those views through liquid financial instruments.

The investment process blends fundamental macroeconomic analysis with a systematic execution framework. The team analyzes key economic variables such as economic growth, inflation trends, liquidity conditions, and fiscal policy developments to identify potential investment opportunities. These macro signals are then translated into trade ideas with risk-adjusted position sizing and disciplined portfolio controls.

The fund is managed by AVM Capital Pte. Ltd.. Key service providers supporting the fund include Citco Fund Administration as administrator and PwC as auditor. Prime brokerage services are provided by J.P. Morgan and Société Générale. Information on the regulatory license or supervising authority has not been publicly disclosed.

Fund Strategy

The strategy aims to convert macroeconomic insights into investment positions using liquid instruments across multiple asset classes.

Core Investment Instruments

The investment process begins by forming macro hypotheses based on economic indicators and policy developments. These hypotheses are then tested across multiple countries and asset classes using long-term historical data. Risk budgets are allocated to trades based on conviction levels, market structure, and statistical validation.

Positions are sized using a combination of price momentum, volatility levels, and predefined risk budgets, while continuous monitoring ensures the portfolio remains aligned with the fund’s target volatility profile.

Portfolio Construction

Portfolio construction is driven by risk allocation rather than capital allocation. Each potential trade is assigned a specific risk budget, and positions are introduced only after passing both fundamental validation and quantitative testing.

The strategy maintains diversification across multiple geographies and asset classes, primarily using instruments with deep liquidity. This approach helps minimize counterparty risk and liquidity constraints during volatile market conditions.

Portfolio exposures are continuously adjusted based on changes in macroeconomic data, model signals, and evolving market risks.

Risk Management

Risk control is embedded into every stage of the investment process to maintain the fund’s low-volatility objective.

Leverage and gross exposures are controlled through internal thresholds designed to avoid excessive drawdowns, though the exact numerical limits are not publicly disclosed.

The framework focuses on understanding exposure to macroeconomic outcomes, ensuring the strategy remains resilient across different market regimes.

Risks of Investing

Market and Liquidity Risk

Global markets can experience sudden price swings due to economic events, geopolitical developments, or shifts in investor sentiment. During market stress, liquidity conditions may deteriorate, making it harder to exit positions.

Derivatives and Leverage Risk

The use of futures, swaps, and options can amplify both gains and losses. These instruments may also introduce margin requirements and counterparty risk.

Currency Risk

Exposure to multiple currencies means exchange-rate fluctuations can affect the fund’s overall returns.

Key-Person Risk

The strategy relies significantly on the expertise of its senior investment professionals. Any changes in the leadership team could affect strategy execution.

Operational Risk

Operational disruptions, including technology failures or service-provider issues, may impact fund operations and execution processes.

Why Consider This Fund?

The fund’s Chief Investment Officer and core team have personal capital invested alongside investors, aligning incentives and demonstrating confidence in the strategy.

Another distinguishing feature is its low correlation with traditional markets. The strategy shows only 14.2% correlation with the S&P 500 and 20.5% correlation with global bond markets, making it a useful portfolio diversifier, particularly during periods of equity market volatility or downturns.