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Melanion Capital Gets Green Light To Be First Investment Manager To Focus On Dividend Futures

Natasha Taghavi

9 July 2013

Paris-headquartered Melanion Capital has received authorisation from the French Autorité des Marchés Financiers to become the first alternative manager to specialise in investment in dividend futures.  

Led by Jad Comair, founder and chief investment officer, the Melanion team traces its track record and expertise in dividend futures from 2008, the year of the first listing of a dividend future on Eurex. Melanion said that since its inception in 2008, the trading strategy employed by the firm has generated an average gross return of 20 per cent+ per annum, compared to a 2 per cent average decline in the EuroStoxx50 during the same period.

"Because they’re simple, easy to understand and answers investors’ need to hedge their dividend exposure, dividend futures have become very popular since 2008 in an environment where other assets were losing momentum after the financial crisis,"said Comair, adding that the firm expects such derivatives to become the "asset class of the next decade".

Since 2008, the dividend futures market has expanded in volume, in the number of traded instruments (single stocks, indices, options), the number of exchanges issuing these contracts (Eurex, NYSE Euronext, MEFF, LSE, Tokyo, Singapore) and the number of market participants (institutions, banks, family offices and others), the firm said in a statement.

Other members of the Melanion team include: Antoine Iskandar, portfolio manager; Bing Zhou, risk manager; and business development manager, Erwan Tigreat.