Result of research started in 2005 and launched in 2016. Brehat is a UCITS designed as an alternative to long-only volatility* and short-only volatility** strategies. It combines the strengths of each strategy, while trying to mitigate their drawbacks.
The objective of the fund is to perform during equity market crashes while taking advantage of bullish phases.
- Brehat is a strategic tail risk strategy whose cost is not prohibitive over the long term
- Top performing tail risk fund in its category since inception*** (7 years)
- The fund is article 8 since 2021
*Long only volatility strategies protect against shocks. Their objective is to provide insurance. However, they are structurally bearish and their cost is prohibitive.
**Short only volatility strategies pay off in case of calm markets. However, they are very vulnerable during market crashes.
***According to Citywire data – Category: Volatility
As an illustration, Brehat acted as an equity portfolio hedge during the Covid crisis in March 2020****.
It was up around 30% net in 2020****.
****Base 100 curves at market close on 09/30/2019. The S&P 500 Index is the property of Standard & Poor’s.
The VIX Index is a volatility index calculated and published by the Chicago Board Options Exchange (CBOE).
Past performance is not a reliable indicator of future performance. The fund presents a risk of capital loss.
S&P 500 and VIX data source: Bloomberg / Bréhat I: Vivienne Investissement.
