ELIA Fixed Income Opportunities EUR

Nov 7, 2024

Written by: Christos Kontos, Founding Partner of ELIA Investment Advisors Ltd.

Dear valued investor

We are glad to inform you that our fixed income programme in EUR has hit a new all-time high yesterday.

More specifically, the programme is up +5.75% YTD (net) , following up on a return of +11.98% in 2023.

This comes in an environment, where the fixed income space has been particularly hit lately, with most EUR fixed income benchmarks and programmes trading much lower than the levels reached during summer. Since the inception of our programme, the market is still in deep negative territory, while we are enjoying solid double-digit gains.

We have been cautious on the rate development on EUR space,  and we have long claimed that the rate trajectory followed by ECB should not be so relevant for the performance of the EUR bond market, due to the rate expectations already priced-in.

As I have been doing all this time, our previous commentaries (January and June 2024) shall add credibility to our views and positioning.   This should make clear that the performance result is not a random time point, but rather the result of a profound analysis and effort over time.

Some other key facts and figures for your reference:

    • Since inception the program is +12.81%.
    • Achieving its aim of delivering 3% above cash yields in a low-volatility, reliable fashion.
    • The program has been running with 12-month rolling returns in the area of 8%+ , for every 12-m rolling period since June 2023 (almost 1.5 years now)
    • The draw-down of 2022, being the result of sudden rate spikes and the outbreak of war, was overcome in 16 months, while the market still trades on average 10% lower than the 2022 levels
    • Clearly superior performance versus market and peers. Our program outperforms the EUR fixed income benchmark by +25% since its inception
    • Low downside exposure and high upside capture

We could not be more optimistic about the performance of the EUR Fixed Income program looking forward, and we are confident in delivering high single digit compounded returns in the years to come

Moreover, the performance of our USD Fixed programme (+8.21%, +7.01% in 2023) is an additional  testament to our ability to navigate successfully the challenges of the fixed income market, and deliver absolute returns in a reliable fashion.

Sincerely

 

Christos Kontos, CFA, FRM

Eveline Bieler

Independent Advisor to the Board

Eveline is an Independent Advisor to the Board on multiple corporate topics. Eveline brings an extensive experience in supporting wealthy families in their banking and wealth management matters. Prior to joining ELIA Investment Advisors, Eveline had worked for 10 year at key client desks of UBS, Bank Morgan Stanley and Goldman Sachs in Zurich, and has also spent two years in Hong Kong as an Analyst for a Boutique Financial Advisory, Private Equity & Risk Management Firm. Eveline holds a specialist certificate in Asset Management from Hong Kong Securities and Investment Institute and has completed a Master’s Degree in Financial Consulting and the Certified Financial Planner (CFP®) programme at Zurich University of Applied Sciences.

James Bejjani

Senior Partner

James has over 17 years of experience in Portfolio Management and Special Situations in the United States, Europe and the GCC. His areas of expertise span across a range of asset classes including Private Equity and Venture Capital. Prior to joining ELIA Investment Advisors James Bejjani served as Director of a large Geneva based multifamily office, and member of its Investment Committee. Earlier, James had spent eight years at M1 Group, a Single Family Office, where he was a Portfolio Manager. In that role he led M1’s Fixed Income investment activities in public (credit and capital structure investing) and private companies in both Developed and Emerging markets. Before that, he worked at Macquarie Funds Group where he had dual responsibility as a Trader and Analyst for a multi-billion dollar Fixed Income portfolio for institutional clients. He was also previously an Associate Director and an Institutional Investor ranked Strategist at UBS Investment Bank in New York. He began his career on Wall Street at Mortgage Industry Advisory Corporation (as a Quantitative Analyst). 

James earned his MS in Financial Mathematics from Warwick Business School in the UK, his BA in Economics and minor in Mathematics from the American University of Beirut and his double LLB degree in Private and Public Law from Saint Joseph University. He also completed an executive program at the Wharton School of the University of Pennsylvania. In addition, James is a member of the NY based Fixed Income Analysts Society.

Anton Schmidt

Managing Partner

Anton has spent over a decade covering UHNW families and individuals. He dedicated his professional career to providing tailor-made and differentiated investment advice across major asset classes and whole range of financial instruments. Most recently as an Executive Director and Private Wealth Advisor in the Private Wealth Management division of Goldman Sachs in Zurich after joining from Morgan Stanley in 2012, where he started as an analyst in 2010. His prior professional experience includes Bloomberg in London and Volkswagen in Wolfsburg.

Anton holds a Business Administration Diploma (MSc) with specialisation in Banking & Finance from Mannheim University, Germany and a Postgraduate Certificate in Finance from London School of Business and Finance, UK.

Christos Kontos CFA, FRM

Founding Partner & CEO

Prior to setting up ELIA Investment Advisors, Christos worked as an Executive Director at the Wealth Management divisions of Goldman Sachs (2014 – 2019) and Morgan Stanley (2007 – 2014), offering an institutional approach to private client investing. Before entering the world of the two large Investment Banks, Christos served as a Senior Associate for Swiss Capital Alternative Investments (currently StepStone Global), a Hedge Fund company based in Zurich, dealing with the design of specialised investment solutions for pension funds and insurance companies. Prior to moving to Switzerland in 2005, he worked in the Fixed Income Derivatives department of Intesa San Paolo IMI in Milan, and Equity Trading at NBG Securities and Alpha Bank in Greece.

Christos is a holder of the Certificate of Business Excellence from Columbia Business School in New York and holds an MBA from SDA Bocconi in Milan, an MSc in Finance from Strathclyde University in Glasgow and a BSc from Athens University of Economics and Business. He is a certified risk manager (FRM) by the Global Association of Risk Professionals (GARP) and holds the Chartered Financial Analyst (CFA) designation.