Karakoram launches Convertible Bonds Absolute Return fund

French boutique manager Karakoram launches the K2 fund, an absolute return strategy mixing convertible bonds with short transactions on equity markets. The equity exposure is kept market neutral, fluctuating between -30% and +30%. The fund will be managed with a 3% volatility target and aims to outperform Eonia + 5% over a three-year investment horizon.

Karakoram is an independent French boutique asset manager established in 2011. The LuxHedge database already contains the Karakoram Annapurna fund which is a lower volatility variant from K2, mixing money market instruments with short-term operations on equities.

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