Tenax Capital’s UCITS cat bond fund returns 17.9% net in 2023

Demonstrating the strong performance of catastrophe bond investments in 2023, Tenax Capital, the London based hedge fund investment manager that operates a UCITS cat bond strategy, is reporting a 17.9% net return in EUR for its fund for 2023.

Tenax Capital explains that this represents “a record performance in a record year,” for the firm and the cat bond asset class.

It’s important to note that Tenax Capital is reporting the EUR hedged class, accumulation, of its UCITS cat bond fund here.

The investment manager states that, “With a net total return of 17.9%, Tenax ranks as the top performer ILS manager in the UCITS universe for the full year 2023.”

This is across comparable UCITS cat bond fund share classes, denominated in EUR.

Marco della Giacoma, Portfolio Manager in the Tenax Capital ILS team commented, “Of course, we are pleased to give our investors record returns in 2023, but what is important to us is the consistency of the Tenax ILS Fund returns over the last five years.

“Over this period, we are one of the top-performing funds. This underlines the strong and effective work done by the team in a very competitive market.”

“2023 was one of those years that will be talked about for a long time, and our outlook for 2024 is again positive. But we can’t rest on our laurels. If meaningful new capital flows into the market in 2024, it’s important we maintain the discipline that has eluded so many in the aftermath of hard markets in the past,” added Toby Pughe, ILS Analyst.

Massimo Figna, CEO of Tenax Capital, also said, “We are confident that our track record will attract more capital into the fund, but also that the entire ILS market is poised to grow given the compelling value proposition of ILS as a strong portfolio diversifier with a high Sharpe Ratio.”

The Tenax Capital cat bond fund performance is one of the most impressive we’ve seen so far. In fact, the USD share class of Tenax’s cat bond fund delivered a truly impressive 21.87% return for the year.

While investment managers may use different benchmarks and statistics to promote their performance, this is yet another representation of the fantastic performance of the catastrophe bond asset class in 2023, setting a very high bar for future years.

The Tenax ILS UCITS cat bond fund lifted its assets under management (AUM) to $105 million by the start of 2024.