Smerlado Sub-Fund, a sub-fund of Cerro Torre SICAV p.l.c. (the “Company”) is licensed by the Malta Financial Services Authority (“MFSA”) as a Alternative Investment Fund (“AIF”) which is available to Experienced Investors. AIFs are non-retail collective investment schemes, therefore, the protection normally arising as a result of the imposition of the MFSA’s investment and borrowing restrictions and other requirements for retail collective investment schemes do not apply. Investors in AIFs are not protected by any statutory compensation arrangements in the event of the fund’s failure. The MFSA has made no assessment or value judgement on the soundness of the Company and its Sub-Funds or for the accuracy or completeness of the statements made or opinions expressed with regard to them.
The Investment Objective of the Sub-Fund is to obtain absolute positive returns, while spreading the risk by adequate diversification of the portfolio over the short to medium term (2 to 5 years).
The Sub-Fund will generally invest either directly or through regulated collective investment schemes in a wide range of instruments including but not limited to (i) listed equities; (ii) listed bonds; (iii) cash settled single stock or index linked FDIs, mainly options and futures; and (iv) currencies.
It is anticipated that Sub-Fund will not be biased towards any specific country, industry or market capitalization. The selection of the target issuers will be based on a combination of technical and fundamental analysis which also takes into account the macro and micro economic environment. The Sub-Fund may invest in listed Bonds of any credit rating and may also invest in Bonds that do not have a credit rating.
The Investment Manager may vary the composition of the portfolio of the Sub-Fund to take advantage of trends that might occur over time. The Sub-Fund may also retain amounts in cash or cash equivalents, pending reinvestment, if this is considered appropriate to the objective of maximising absolute returns. The Sub-Fund will not invest in real estate. Uninvested cash which has not been placed as margin may, subject to investment restrictions, be held on deposit in a bank account in the name of the Sub-Fund. When appropriate the Sub-Fund may also employ leverage through borrowing.