Damien Buchet, who was previously global head of Axa’s emerging market fixed income team, has joined London-based Finisterre as chief investment officer for its Emerging Market Debt Total Return Strategy.
In the newly-created role built especially for the new business unit, Buchet will use his “well-tested” portfolio construction process to drive returns of 3-7% per year.
The new strategy, which currently consists of two funds, operates within an unconstrained and entrepreneurial hedge fund environment. It was built to respond to investor interest in regulated liquid alternative products.
Overreliance
“Emerging markets need to develop a new business model away from a reliance on Chinese demand, industrial relocation from developed markets and an overreliance on commodities,” said Buchet, pointing to the new wave of reforms across emerging markets which are designed to increase competitiveness.
“The pace and extent of these reforms will vary country to country, sector to sector, industry to industry, and this will create a fertile environment for relative value and tactical market calls.”
He added: “We believe that the total return strategy we have developed is best suited to navigate these opportunities in a regulated and liquid format.”
