Hydra Capital Management Victoria Embankment, London Middlesex England

Hydra Capital Management Ltd. specialises in Global Emerging Market Fixed Income relative value arbitrage by acting as investment advisor to the Lodsworth Arbitrage Fund. It is a UK registered independent investment firm authorised and regulated by the Financial Services Authority.

Investment approach

Emerging Markets are comprised of countries at various points of structural, political, regulatory and capital market reform. Opportunities arise from transitional conditions that exist as these reforms succeed or fail, and from changes in market liquidity that accompany such shifts. Our approach identifies and articulates key trends in each of these countries, and seeks the best risk/reward opportunities to benefit from those trends.

The Lodsworth Arbitrage Fund strategy is a Relative Value approach that identifies pricing disparities that occur within emerging market external and local sovereign fixed income debt. Investment ideas are generated by quantitative analysis of price inter-relationships across markets and asset classes in the emerging markets. Once identified, fundamental trends are used to determine why an idea may generate returns