+49 69 710 426 777

SHY Synthetic High Yield

Investment Policy

The goal of Tungsten SHY Synthetic High Yield UI is to generate a stable return via a synthetic replication of a high yield portfolio. Outperforming the benchmark (Iboxx High Yield Index) is SHYs long term objective. The investment strategy of the fund is based on a noble priced idea of Robert Merton and replicates high yield corporate bonds done by exchange traded derivatives on indices and stocks. While using derivatives the fund’s portfolio is not as vulnerable as a portfolio using cash bonds during a crisis on the markets. Additionally the diversification of a high yield investor will be improved.

Manager Profile

Lutz Klaus is joining Tungsten as Partner and Executive Director coming from Mayfair Asset Management, the well renowned family office of the Herz family (“Tchibo”). He started his career in the Asset Management department of cologne-based private bank Sal. Oppenheim subsequently leaving for the multi-billion Euro Degussa Pension Fund where he became CIO. During his tenure the fund successfully avoided most pitfalls of the recent financial crisis leading to several Awards from “Portfolio Institutionell.” His investment style is a combination of modern portfolio construction theory paired with derivative overlay strategies.

Lutz Klaus holds a degree as “Diplom Ökonom” from the University of Giessen and is a CFA Charterholder.