Sat, Sep 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Long volatility overlay helps HEI fund to profit when investors become more risk averse

Monday, March 29, 2010

From Sagar Chakraverty, Opalesque Asia:

Hedged Enhanced Income Fund (HEI), an $8.3m liquid multi-asset market neutral fund, was launched in March 2010 in an LP structure, after being a managed account between April-09 to Dec-09 and returning 12% then.

In Jan-10, the managed account trading returned 0.7%, after which trading was terminated in order to liquidate securities so as to transfer cash in HEI.

The fund’s investment advisor is New York and London-based Thomas Funds, a specialist in hedged multi-asset portfolios founded by Manit Rye and Glen Cremer.

HEI fund strategy Being market risk averse and targeting a return of 8% to 12%, the HEI portfolio follows two strategies – investing in hedged income generating assets and maintaining long option positions on multiple assets.

The hedged income strategy is invested in three kinds of portfolios, each having 75 to 100 securities. The first is a portfolio of high yielding dividend stocks with market and sector options. Then, there is a portfolio of high yield fixed income assets hedged with debt and equity options. And finally, there is a portfolio of Real Estate Investment Trusts hedged with sector options. This strategy targets a net return of 5% to 8%.

The multiple option overlay strategy allows investors to bet on price or volatility fluctuations in multiple-assets such as gold, commodities, emerging market equities, bon......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. iCapital Network enters deal to acquire innovative U.S. private equity access fund platform from Deutsche Bank[more]

    Komfie Manalo, Opalesque Asia: Financial technology platform iCapital Network has entered into a definitive purchase agreement to acquire the US Private Equi

  2. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De

  3. Neuberger Berman closes $1.1bn Credit Opportunities Fund[more]

    Neuberger Berman, a private, independent, employee-owned investment manager, announced that NB Private Equity Credit Opportunities Fund LP closed on $1.1 billion of limited partner commitments. The Fund seeks to invest in the secured and unsecured debt of private equity-backed companies, primarily i

  4. Capital Dynamics launches mid-market private credit business[more]

    Capital Dynamics, a global private asset manager, has launched a dedicated Private Credit Asset Management business. Experienced industry executives Jens Ernberg and Thomas Hall have joined Capital Dynamics to co-lead the company's new private credit initiative. They are based in Capital Dynamics' N

  5. ...And Finally - FAN-antic[more]

    From Newsoftheweird.com: Jeffrey Riegel, 56, of Port Republic, New Jersey, left 'em laughing with his obituary's parting shot at the Philadelphia Eagles. In it, Riegel asked that eight Eagles players act as pallbearers, "so the Eagles can let me down one last time." Riegel owned season tickets for 3