e-fundresearch.com: Mr. Gregor Gawron, you are the fund manager of the Falcon Insurance Linked Strategies fund (ISIN: LU0524670394). When did you take over the responsibility of managing this fund?
Gregor Gawron: Since June 2010
e-fundresearch.com: What is the current size of the fund?
Gregor Gawron: USD 186mio.
e-fundresearch.com: Do you also manage other funds or mandates?
Gregor Gawron: Yes, Falcon CAT Bond Fund and Mandates.
e-fundresearch.com: What is the total amount of assets you manage currently?
Gregor Gawron: USD 266mio
e-fundresearch.com: How long have you been in the business as a fund manager?
Gregor Gawron: Since 2005
e-fundresearch.com: What are the main steps in your investment process and in which area is your competitive edge to add value to investors?
Gregor Gawron: The investment process is twofold; combining the actuarial and financial analysis in order to deliver performance in line with targets, on the one hand, and minimise portfolio risk, on the other. This is achieved by thorough analysis of the single position, selective investing and a diversified portfolio construction in order to guarantee capital preservation which is a key objective. Value added is expected to come from CAT bond selection and strategic asset allocation performed by a proprietary optimisation tool. Value added is also expected to come from trading, but to lesser extent, which is in line with the 80% of the portfolio invested with the intention to hold it until maturity.
e-fundresearch.com: Which benchmark is most relevant and how should investors compare the fund vs. benchmarks or peer groups?
Gregor Gawron: The most comprehensive benchmark is the Swiss Re Cat Bond index which includes all outstanding bonds. Since the overwhelming majority of bonds have exposure to the peril US Hurricane (approx. 75%) it is less informative to compare fund’s performance with this index. The Falcon ILS fund follows a diversified investment strategy with rarely exceeding a 40% allocation to that peril.
e-fundresearch.com: Which performance did you achieve for the fund YTD and over the past five calendar years in absolute terms and relative to relevant benchmark or other reference indices?
2013: 2.21% as of April 2013
e-fundresearch.com: Many Thanks!