Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015 - (Page 60)
15 MINUTES WITH...
LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE
/ NOV / DEC 2015
- Emmanuel, you are Corporate Secretary and COO.
Can you introduce the company and its fund
management activity in a few words?
CIAM is an AIFM registered with the AMF, and managing
a Luxembourg AIF, CIMA Opportunities Fund. The Fund is
investing in event-driven, M&A and special situations with a
catalyst, on corporates listed in Europe and North-America.
Founded and managed by Catherine Berjal and Anne-Sophie
d'Andlau, both having long track records in event driven and
M&A investments, the company has now reached a milestone
with over 2 years of solid track-record and a full AIFM setup.
With a long experience in investing in event driven and M&A
equity strategies, the investment team is focusing on corporate
research and on identifying the most relevant investments with
a corporate event catalyst, or embedded value to be released by
corporate activism. The investment process relies heavily on
proprietary equity models and market screenings, and some of
the core positions rely on activism from the investment team
and its legal advisors.
Those angles have differentiated our investment process and
the performances of the fund especially during the periods of
volatile markets, and were key in getting the fund nominated
in its category both at the Euro-Hedge Awards and at the HFM
- How do you see markets at the moment?
The year so far has been extremely challenging and shaky on
equity markets, and is set to remain volatile going forward.
As we saw over the last months, the central banks, whilst
supporting equity markets by extending their injections of cash
and their periods of zero interest rates, have decided to temper
the excessive enthusiasm of the markets. European markets
weathered well the noise created by the Greek crisis, and as was
expected, went out of it by retesting in August their highs of
the year. During all this period, equity investments with a low
correlation to the indices proved profitable and resilient.
Now that the Federal Reserve has extended its scope to the
global economy and has introduced into the equation global
trade volumes and the specific issues of China and emerging
countries, we can expect an even more uncertain path going
forward. After one of the strongest rally ever for the first four
months of the year, followed by a period of consolidation amidst
market drops, volatile markets are ahead of us.
At the same time, with interest rates set to remain close to zero
for the foreseeable future, the conditions and incentive are there
for corporate activity and M&A, from large consolidation deals
down to small acquisitions and capital structure optimization.
This reinforces the necessity of diversification of cash and treasury investments, from fixed income markets hampered by a
conjunction of extra low returns and volatility risks, into equity
strategies, and particularly those into decorrelated strategies
like specific corporate events, M&A, or offering catalysts for
- So you think M&A
for fund managers &
investors for the
Definitely, and 2015 looks
ripe to set a new record
in terms of corporate
Global M&A for the first 8
months of the year is over
US$ 2.8 trillion, including
US$ 1.5 trillion for North
America and close to
US$ 600 billion for
Europe. This is equivalent
to about US$ 4 trillion on
an annualized basis, the
highest since 2007!
Company Secretary and COO
Mr. Drujon has 25 years of experience with
investment banks and fund managers, in
developing and managing investment activities. His career includes senior roles with
Merrill Lynch, Donaldson Lufkin & Jenrette
and Lehman Brothers, and with fund managers Systeia Capital Management,
Argent Financial Group, and Signature
Mr. Drujon graduated from Ecole Nationale des Ponts & Chaussées and from the
Sorbonne University Law School.
This results also from the combination of high cash reserves
from companies worldwide - above 4 trillion US dollars - and
of free cashflow yield above their 10 year corporate bond yields,
for close to two thirds of the US companies and three quarters of
the European ones.
Combined with a high Private Equity firepower, this global
trend is there to last. And the weakening of the Euro vs the US
Dollar and the other main currencies has made European corporates and their equities more attractive for investors as well as
for foreign bidders.
The investment opportunities for the next couple of years in
that field will be many and diverse, from large consolidation
deals between global industry leaders, to restructuring and
growth situations, and including the sale of medium-sized
businesses and family holdings.
We focus on corporate research, and we select the investments
in the Fund on expectations of corporate activity, special
situations, mergers and acquisitions, and on identified triggers
of revaluation. In such volatile markets driven by index tracking
and program trading, we avoid correlation with liquidity-driven trends and sectorial rotation, and generate alpha with low
volatility and a high percentage of positive monthly returns.
- In this context, what are your main current
Following two years of consistent track-record and positive returns, we have registered the asset-management company and
the fund in conformity with the AIFM Directive, and have raised
additional assets into the fund.
We will keep investing in situations offering a significant upside
thanks to the materialization of a corporate event or an M&A
situation. And we will keep acting around those situations,
working actively to unlock a higher value from our investments
(as we previously did on Club Med for example).
We also plan to launch a UCITS version of the current investment program, with a slightly more diversified portfolio than in
the existing SIF fund.
Table of Contents for the Digital Edition of Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015
Table of contents
FINANCIAL HIGHLIGHTS Luxembourg Tax News
INTERVIEW Ben Poole Editorial Services
To What Extent Should Treasurers’ Activities be further centralized?
Capital Markets Union (CMU)
Upsurge in fraud
Using analytics to cope with uncertainty and volatility for treasury
IFRS 9 : Nécessite d’une reorganisation bancaire majeure
Taux zéro : de nouvelles stratégies pour un nouveau monde
Investing surplus cash in repos
Warranty & indemnity insurance
Making the switch from Excel to a Treasury System
Corporate treasury in the digital age
Fini le casse-tête des paiements internationaux pour les entreprises !
Bank Independent Cash Pooling
Gérer l’offre de retraites : un choix complexe pour l’entreprise
15 MINUTES AVEC CIAM
THE FINANCIAL RISK OBSERVATORY
LIFE BEYOND NUMBERS
Trésorier/Treasurer magazine - N°91 - Oct/Nov/Dec 2015