The Caravel Capital philosophy is built on the principle that the founding partners and their families make up the largest investor percentage in the fund. We consider every investor a partner, and their investments in The Fund are treated with as much care as our own, focused on achieving one goal. This goal is to achieve above-market returns with below-market risk. Caravel Capital provides transparency, liquidity, and accountability far beyond its competitors.
Caravel Capital is the product of 2 veteran hedge fund managers having moved from Canada in 2015 and relocated to The Bahamas. Combining the two Founding Partners’ experience, which spans five decades of market-neutral investing generating low volatility returns, has produced an enviable five-year track record. The firm’s talent in Market-Neutral strategies combined with a focus on capital preservation has allowed Caravel Capital’s Cad Fund to outperform Hedge Fund Industry Benchmarks and all major global stock indices since inception while generating a Sharpe Ratio of more than 2.
Above-Market Returns with Below-Market Risk is the mantra that greets every visitor to our website, and it is our goal and commitment to our partners. We have achieved this goal through the founding partners’ alchemy of principles: experience, knowledge, patience, and discipline. When utilized in a Hedge Fund, these qualities regularly produce high returns with low volatility. There is no secret algorithm or cold fusion. Caravel’s Investing Partners are the direct beneficiaries of these principles. The Founding Partners at Caravel are responsible for protecting and preserving them.
Caravel Capital also employs controls that are exclusive to the composition of the Caravel Capital Fund. Other industry participants seldom use these controls as they require managers to forgo the lure of fee generation at the expense of wealth preservation.
All employees reinvest a minimum of 50% of their performance fees into the fund. (100% is typical)
Caravel mandates that the employees’ combined investment is at all times the largest single investment in the fund.
Caravel employees represent 20% of assets under management.
Caravel notifies all partners of all investments and redemptions by employees monthly. (We would never invest in a company whose management did not disclose insider transactions, we don’t think our investors should either.)
These controls supplement Caravel Capital’s ability to maintain its above-market return with a below-market risk profile by controlling fund risk. Providing transparency, accountability, and liquidity well beyond its competitors helps explain why the fund seldom has redemption requests and regularly has capital waiting to come in.