Our Policy Statement
Amaboza Capital Investment policy outlines the specific investment mandates, risk frameworks, and operational rules governing the fund. It typically establishes limits on leverage, asset allocation, short-selling constraints, and risk controls. Below is our structured fund policy
1. Investment Objective & Mandate
§ Primary Goal
Generate absolute returns with low correlation to broader equity and fixed income benchmarks, targeting a net return of (30% - 100%) monthly.
§ Strategy Allocation
Primarily utilizes a Long/Short Equity strategy, focusing on undervalued assets (long positions) and overvalued investments (short positions).
§ Universe
Equities listed on major global exchanges, derivatives (options, futures), and fixed income securities.
2. Risk Management & Constraints
§ Leverage Limits
Total gross exposure will not exceed 200% of the fund's Net Asset Value (NAV). Net exposure must remain within 10% to 50% of the capital
§ Drawdown Control
If the fund's NAV declines by 35% in a calendar month or 60% in a rolling quarter, gross exposure is automatically reduced by half until risk parameters are reassessed.
§ Concentration Limits
No single long position may exceed 25% of the fund’s total NAV. No single short position may exceed 10% of NAV.
§ Liquidity Constraint
At least 75% of the portfolio must be invested in assets that can be liquidated within 20 business days.
3. Hedging & Short Selling Policy
§ Short Selling Rules
Short positions may not exceed 50% of the total NAV. All short sales must be fully collateralized and borrow arrangements must be confirmed prior to execution.
§ Derivative Usage
Derivatives are strictly restricted to hedging existing portfolio risks (e.g., buying put options) and enhancing yield. Naked selling of unhedged call options is prohibited.
4. Valuation & Liquidity Policy
§ Independent Valuation
All securities and Over-The-Counter (OTC) derivatives will be valued daily by an independent our Amaboza Capital fund administrator.
§ Redemption Rules
Investors are subject to a soft lock-up period of 12 months. Redemptions require a 45-day prior written notice and are subject to quarterly liquidity gates of 25% of investor capital.
5. Compensation & Fees
§ Management Fee
10% annualized, calculated and payable monthly in arrears based on the fund's NAV.
§ Performance Fee
20% of net new profits, subject to a high growth rate provision, meaning performance fees are only paid when cumulative profits exceed previous peak valuations.
For more information on our structural frameworks and alternative investment option, visit www.amaboza.vip
