The London-based firm has created a new leadership role for its total return strategies.

Finisterre Capital, the emerging markets investment firm, has added to its total return strategies and hired Damien Buchet from AXA Investment Managers as chief investment officer for the range.

Buchet joins after five years as global head of emerging markets fixed income at AXA IM. Based in London, he takes on the newly-created role to head up the firm's total return strategies, which has been boosted with the Finisterre Emerging Market Debt Total Return Strategy. 

Finisterre said the new strategy will operate within an unconstrained and entrepreneurial hedge fund environment. It will aim to optimise the yield-liquidity-volatility profile of its portfolio, targeting returns of three per cent to seven per cent per year over a cycle.

Buchet, who has a top-down approach, will work alongside Christopher Watson, head of credit research and credit portfolio manager. Watson, who has been at Finisterre since 2007 and has a fundamental, research driven approach, runs the firm’s $720 million in long-biased strategies.

“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,” said Buchet.

“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.”