Swiss-Asia Cap Intro Interview Series – Salmon Global Fund
March 23, 2016
Written by Swiss-Asia
Looking for a fund which rises above the current market volatility with a tried and tested, PhD certified investment strategy? Salmon Global Fund might be a good fit for you. Ahead of the first Cap Intro by Swiss-Asia event, an email interview with Fund Manager Gaurav Bansal reveals the factors to consider in a volatile and unpredictable market.
- Hi Gaurav, please share with us the investment strategy at Salmon Global Fund.
Salmon Global Fund is an ultra-diversified global macro fund investing in bonds, equities, commodities, currencies, spreads, options, volatility, and other deeply liquid investments. The investment strategy is to harvest risk premiums that exist in these liquid instruments over time, in a manner which reduces volatility without compromising expected return. The fund also has a proprietary hedging strategy which protects it from a severe drawdown, such as the 2008 financial crises.
- What made you decide to start your own fund?
I started my own fund when I was doing my PhD. At that time, my research was focused on tail risk management. Simultaneously, I was managing my personal investments according to the unique strategy developed during my studies. As expected, the investment strategy worked over a period of time. When tested under practical conditions, my PhD thesis was also approved by the Singapore Management University (SMU). The positive results then sealed my decision to start Salmon Global Fund.
- How do you keep the momentum going in a volatile and unpredictable market?
There are a few factors at play – a strong risk management framework, a robust proprietary hedging strategy and most importantly, knowing that all crises do come to an end. When I was doing my PhD, a big part of my research was studying market behavior during extreme volatility. It almost feels like I’ve lived through all sorts of economic crises, including the Tulip Mania of 1637 when prices for single tulip bulbs reached extraordinarily high levels before suddenly collapsing.
- What is your trading philosophy?
Salmon Global Fund is long horizon in its thinking. Essentially, we are focused on harvesting risk premiums, which takes time. The same is reflected in our trading philosophy, which is long term.
- Any advice for aspiring entrepreneurs looking to start their own fund?
At Salmon Global Fund, we believe that one should not hold back when you believe you have a good idea. As long as it works in the practical world, just go out there and start your own fund! Like a salmon, swimming against the water currents will be difficult, but not impossible by any stretch of imagination.
- If you were not a fund manager, what would you be?
I absolutely love what I do and dare not imagine what else I would ever want to be. Having said that, I am also passionate about long distance trail running, and I would probably take that up full time if I was not managing my fund.
For more event information on the featured funds, travel arrangements and Swiss-Asia Financial Services, please visit https://www.swissasia-group.com/cap-intro/. Registration closes on 4 April 2016.