Wed, Jul 30, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Frontier Capital Management launches FrontEdge managed futures FoFs

Thursday, November 25, 2010
Opalesque Industry Update - Frontier Capital Management LLP (“Frontier”) announced the launch of a new fund: FrontEdge Managed Futures Fund.

The Fund is designed to offer investors an efficient method of accessing Managed Futures, and is the second alternative investment fund established by Frontier, following FrontEdge Global Hedge Fund which launched in 2009.

The managed futures asset class is currently experiencing increased interest, as its defensive properties were once again proven in the most recent bear market, with industry returns of around 17% in 2008. The inclusion of managed futures in either traditional equity/bond or more diversified portfolios has been shown to improve risk-adjusted returns, and is one of the most liquid absolute return strategies.

The FrontEdge Managed Futures Fund targets risk-adjusted returns in excess of the average return for the managed futures industry. The Fund is expected to provide excellent portfolio diversification, with low correlations to both equity markets and hedge funds. The Fund employs a unique combination of individual funds, managed accounts (offering daily liquidity and full transparency), and synthetic replication. FrontEdge Managed Futures Fund will be launched with initial investments of $40 million, expected to rise to $60 million by the end of the year.

Michael Azlen, Founder and Executive Chairman at Frontier Capital Management:

“Frontier’s approach to investing is highly evidence-based and the abundant evidence supporting the case for managed futures has always been compelling. Our multi-asset funds have always included an allocation to Managed Futures, due to its high levels of liquidity and its ability to provide diversification of risk while enhancing portfolio returns. For investors constructing their own asset allocation, however, it is not always easy to access the benefits of this asset class: as with any investment there is the need for sufficient diversification and constructing a well-spread portfolio of managed futures funds is both time-intensive and requires expertise.

We believe that we have created a superior fund that could be used as a “one-stop” managed futures allocation within a diversified portfolio.”

Marc-Phillipe Davies, Head of Investments, believes Frontier’s experience in multi-asset investing helps give his team an invaluable edge when it comes to Managed Futures:

“Having thoroughly researched and analysed the Managed Futures industry over the last 5 years, and run a portoflio of direct investments in CTAs over the last 2 years, the team is well versed in both the players and sub-strategies of this unique asset class.  As such we will give investors the opportunity to access some of the most successful names in the industry in an intelligent and risk-controlled construct.  This portfolio will be executed by a team that not only has significant due diligence experience, but importantly  has over five years experience directly trading the instruments that the funds themselves trade – an advantage over many fund of funds whose experience is often limited to just fund due diligence.”

Marc-Phillipe is the co-manager on the Fund. The lead portfolio manager is Alex Gaitan, who has many years’ experience of selecting CTA managers and managing fund of hedge fund portfolios.

FrontEdge Managed Futures Fund will be available to external investors from December 1.

(press release)

Frontier Capital Management
Frontier Capital Management LLP is an innovative, evidence-based investment firm focusing on global markets, multi-asset and alternative investment strategies. Founded by Michael Azlen in 2004 after 15 years in the hedge fund industry and 5 years as a proprietary trader, the company launched its flagship multi-asset fund in September 2005. Frontier’s multi-asset (“MAP”) funds were the first funds in the UK to offer “true” multi-asset style investing, using advanced indexation methods and incorporating significant allocations to alternative asset classes. Frontier now manages over US$600 million across a range of funds with a diversified investor base that includes institutions, charities and wealth management firms. Frontier employs 18 staff and is based in Mayfair, London.

FrontEdge Managed Futures Fund is the latest in Frontier’s “FrontEdge” range of alternative investment products. The first, FrontEdge Global Hedge Fund was opened in April 2009 and offers investors access the global hedge fund industry with a single investment, combining investments across a large number of single hedge fund managers with a proprietary blend of synthetic replication products. 

All of Frontier’s funds are designed to offer a high value proposition to clients, with a disciplined investment philosophy, advanced risk management techniques and competitive fees. Corporate website: www.frontiercapital.com

- FG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass