Damien Buchet, former global head of emerging market fixed income at Axa Investment Managers, has joined Finisterre Capital.
He will run a new Emerging Market Debt Total Return Strategy at the London-based company, Finisterre said.
Mr Buchet joined the group in September as chief investment officer for total return strategies. He will be assisted on the fund by Christopher Watson, who has been at the group since 2007 as head of credit.
The new fund aims to return 3 per cent to 7 per cent per year over a cycle. The group said the strategy will “benefit from being operated within an unconstrained and entrepreneurial hedge fund environment and operated using a well-tested total return portfolio construction process”.
Mr Buchet left Axa IM at the beginning of the summer. Axa has not replaced him, instead overhauling its emerging market debt team.
Mr Buchet said: ‘Emerging markets need to develop a new business model away from a reliance on Chinese demand, industrial relocation from developed markets and an overreliance on commodities. They are launching a new wave of reforms mostly targeting competiveness issues.
“But, the pace and extent of these reforms will vary country to country, sector to sector, industry to industry and this will create a fertile environment for relative value and tactical market calls. We believe that the total return strategy we have developed is best suited to navigate these opportunities in a regulated and liquid format.’