Eclipse Fund · In Formation · Crisis Opportunity Investing
Eclipse Fund
In Formation · Target Launch October 2026Long-term capital appreciation from fundamentally sound or credibly improving businesses that have become deeply mispriced during a temporary crisis or market dislocation.
- Target Return
- 10–20%
- Annually, gross of fees. Not guaranteed. Capital at risk.
- Universe
- Global
- Listed equities, cross-market
- Max Position Size
- 20%
- Of Eclipse Fund NAV, maintained after appreciation
- Risk Discipline
- Position-Based
- Concentration limits, thesis-based exits, active options protection
Objective and Portfolio Role
Eclipse Fund is ABCD Fund's global crisis-opportunity strategy. It targets long-term capital appreciation from fundamentally sound or credibly improving businesses that have become deeply mispriced during a temporary crisis or market dislocation — including credible turnarounds where the underlying business is improving, not only businesses that are already conventionally high quality.
Target return: 10–20% annually, gross of fees. This is a target positioning, not a guaranteed or minimum outcome. Eclipse is global, with particular opportunity currently visible across the United States, Hong Kong, mainland China, and Vietnam, though the mandate is not limited to those markets.
Within a broader portfolio, Eclipse is intended to function as a concentrated, opportunistic allocation rather than a core holding — sized to each investor's own risk tolerance, time horizon, and liquidity needs. Positions may be held for more than 10 years while the thesis, valuation opportunity, and compounding potential remain intact; Eclipse does not operate to a fixed maximum holding period.
What Makes a Valid Crisis Opportunity
A severe price decline alone is not an investment thesis. Eclipse Fund looks for situations where a company, sector, country, regulatory, accounting, earnings, liquidity, or market crisis has driven a price decline of approximately 50–99% from prior levels — and where the underlying business shows credible signs of survival and a realistic path to recovery, stabilisation, or improvement.
- Price decline
- Approximately 50–99% from prior levels — the range that distinguishes a genuine crisis dislocation from routine volatility.
- Temporary crisis
- A company, sector, country, regulatory, accounting, earnings, liquidity, or market crisis — not a structural or permanent condition.
- Credible survival
- The business must show a credible capacity to survive the crisis with its balance sheet and operations intact.
- Realistic recovery path
- A realistic path to recovery, stabilisation, or improvement — not a hoped-for turnaround without supporting evidence.
- Asymmetric upside
- Potential upside materially greater than the remaining downside at the point of entry.
- Deep fundamental evidence
- Conclusions are grounded in deep fundamental research, never in the size of the price decline alone.
Eclipse avoids situations involving permanent impairment, unrecoverable governance failure, structural decline, or a recovery path that would remain uneconomic even once the crisis passes.
Portfolio Allocation Framework
Crisis equities remain Eclipse Fund's principal return engine. An active options overlay supports the strategy by generating recurring portfolio cash flow, enhancing returns, and managing downside exposure. Cash provides flexibility to act on new opportunities and to manage risk, and may exceed the ranges shown here — including temporarily reaching 100% — during periods of uncertainty.
These are flexible allocation ranges that shift with the opportunity set and market conditions, not fixed portfolio weights. Covered options may overlap with equities already held in the portfolio rather than sit in a fully separate pool of capital.
The Eclipse Options Overlay
Crisis equities remain Eclipse Fund's principal return engine. An active options overlay supports the strategy by generating recurring portfolio cash flow, enhancing returns, and managing downside exposure.
- An active tool, not an emergency measure. Options may be used continuously across market conditions, not reserved for periods of stress alone.
- Recurring cash flow. Realised option income can help absorb part of the fund's operating and investment-related costs.
- Less reliance on forced selling. Option cash flow reduces the need to sell long-term equity positions solely to realise gains.
- Downside management. Options can help manage exposure and protect parts of the portfolio during periods of stress.
Publicly disclosed instruments include covered calls, puts, index options, structured option positions, warrants, and convertible bonds. Option income and downside protection are not guaranteed: assignment, volatility changes, transaction costs, and losses may outweigh the premiums received. Eclipse Fund does not use borrowing leverage as a primary investment tool — options and other permitted instruments may create controlled economic exposure for income generation, hedging, and specific investment opportunities.
Crisis Reality, Disciplined Opportunity
Why Crisis Investing Is Difficult
The best entry points often appear when fear is highest, but the historical record shows that deeper drawdowns recover less often, and take far longer to heal, than shallower ones.
When markets enter crisis, most investors are selling rather than buying. Liquidity panic, forced redemptions, and news-driven fear can cause fundamentally sound businesses to trade well below their intrinsic value.
The challenge is not finding what has fallen. The challenge is determining whether a price decline reflects a temporary dislocation or a permanent impairment, then acting with conviction while uncertainty is highest and recovery is not guaranteed.
- Maximum fear creates the opportunity. The most attractive valuations tend to appear when sentiment is worst.
- Recovery is not guaranteed. Only a minority of the deepest drawdowns in this record returned to par.
- Patience is measured in years, not months. Deeper drawdowns have historically taken meaningfully longer to heal.
of U.S.-listed stocks that fell 95–100% from their prior high went on to recover to par.
Eclipse Investment Process
Eclipse Fund follows a disciplined, thesis-driven sequence from initial screening to exit. Entry and exit decisions are conviction-based — grounded in fundamental analysis, not mechanical triggers or market momentum.
- Step 1Identify Temporary Dislocation. Screen for market dislocation and crisis-driven mispricing worth researching further.
- Step 2Distinguish Crisis From Impairment. Determine whether the price decline reflects a temporary dislocation or a permanent impairment — the defining judgment before any capital is committed.
- Step 3Perform Deep Research. Company visits, channel checks, alternative data, and fundamental analysis test the thesis in detail.
- Step 4Assess Recovery Path and Valuation. The recovery path, entry rationale, and exit conditions are assessed against valuation and documented before entry.
- Step 5Size the Position. Position size reflects research conviction, bounded by a per-position limit of 20% of Eclipse Fund NAV, maintained even as a position appreciates.
- Step 6Monitor Thesis and Catalysts. Thesis, fundamentals, and risk/reward are monitored throughout the holding period against the catalysts identified at entry.
- Step 7Exit When Value, Thesis, or Risk Changes. Positions are exited when valuation is full, the thesis completes, fundamentals weaken, or the risk/reward balance shifts.
Research and Verification
No position is entered without completing a structured research and verification process. Investment decisions are made on fundamentals, not on market price movements alone.
Deep discovery research combines company visits, channel checks, alternative data, and fundamental analysis to test whether a dislocation is temporary. The investment thesis, entry rationale, and exit conditions are documented before any capital is committed, and re-tested against fundamentals throughout the holding period.
Portfolio Construction and Risk
Eclipse Fund applies structured risk limits to control concentration and monitor thesis integrity. These controls reduce investment risk without eliminating it. This fund does not offer capital protection or guaranteed loss limits.
Eclipse Fund does not publish a numerical portfolio-level drawdown limit. Instead, portfolio risk is managed through per-position limits, thesis-based exits, concentration management, liquidity assessment, permanent-impairment analysis, an active options overlay, cash flexibility, and continuous re-underwriting of every position. Individual securities can still experience severe price volatility, including drawdowns well beyond typical market moves.
- Price volatility
- Positions can move significantly against the thesis before it plays out, including further declines after entry.
- Thesis impairment
- A price decline that reflects permanent impairment rather than temporary dislocation may not recover. Not every position is expected to recover.
- Concentration
- No single position exceeds 20% of Eclipse Fund NAV — a per-position limit designed to contain the impact of any one thesis being wrong, maintained even as a position appreciates.
- Liquidity
- The fund invests in listed global equities. Positions in stressed or crisis-affected names can still experience wider spreads and reduced trading liquidity during acute periods.
- Options overlay
- An active options overlay — covered calls, puts, index options, warrants, and convertible bonds — generates recurring portfolio cash flow, enhances returns, and manages downside exposure. Option income and protection are not guaranteed; assignment, volatility changes, transaction costs, and losses may outweigh premiums received.
- Leverage
- Eclipse Fund does not use borrowing leverage as a primary investment tool. Options and other permitted instruments may create controlled economic exposure for income generation, hedging, and specific investment opportunities.
- Exit discipline
- Exit and reduction decisions are thesis-based and fundamental, not simple price triggers. See Sell and Exit Discipline below for the full framework.
Sell and Exit Discipline
Eclipse Fund does not use a mechanical price stop simply because a share price declines. Entry and exit decisions are conviction-based and thesis-driven — grounded in fundamental analysis and thesis development, not mechanical triggers or market momentum.
Positions are reduced or exited when fair value is reached, the investment thesis breaks, business quality deteriorates, governance or balance-sheet risk worsens, the crisis becomes permanent, or a better risk-adjusted opportunity requires capital.
The active options overlay — covered calls, puts, index options, warrants, and convertible bonds — may be used throughout the holding period to generate recurring cash flow and manage downside exposure, alongside cash flexibility and continuous re-underwriting of every position.
Who This Fund May Suit
Eclipse Fund may suit investors seeking long-term crisis opportunity exposure with a long investment horizon who can tolerate significant volatility, drawdowns, and capital at risk, including the possibility that some investments may not recover.
This fund is not suitable for investors who require capital preservation, cannot tolerate meaningful drawdowns, or need liquidity within a short time horizon.
Eclipse Fund Does Not
- Apply mechanical price-decline rules. A falling price alone is never sufficient for entry.
- Guarantee recovery from any position. Crisis investing involves positions that may not recover.
- Offer capital protection or a capped loss guarantee. Significant drawdowns are possible.
- Promise a minimum return. The 10–20% target return is a positioning, not a floor or guarantee.
- Use borrowing leverage as a primary investment tool. Options and other permitted instruments may create controlled economic exposure.
- Suit all investors. This fund requires tolerance for significant volatility and a long investment horizon.
Investor Terms at a Glance
Headline terms only — full terms are set out in the offering documents and reviewed during investor briefing.
- Minimum initial investment
- USD 300,000
- Liquidity
- Quarterly
- Lock-up
- Three-year soft lock-up; 0.5% early-redemption fee before three years
- Performance fee
- High-water mark applies
- Capital at risk
- Investment strategies involve risk, including possible loss of capital
Related Reports
Eclipse Fund's research draws on ABCD Fund's broader equity research process. Published research related to this strategy appears below.
Important Disclosures
- Eclipse Fund involves significant investment risk, including possible loss of capital. The value of investments may fall as well as rise.
- The 10–20% target return, gross of fees, is a target positioning only and is not a guarantee of future performance.
- Eclipse Fund does not publish a numerical portfolio-level drawdown limit. Individual securities may experience severe volatility; risk is managed through position limits, thesis-based exits, and the other controls described above, none of which guarantee against loss.
- Option income and downside protection generated by the options overlay are not guaranteed and may be outweighed by assignment, volatility changes, transaction costs, and losses.
- This page is an investor overview, not a formal factsheet. Full details should be reviewed during investor briefing and formal onboarding.
Investor Relations
Request an Investor Briefing
Qualified investors may request a strategy briefing to learn more about Eclipse Fund, including investment process, risk framework, formal terms, and future factsheet documentation.