Thu, Apr 2, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Swiss Investment Managers debuts Europe's first director's dealings fund

Monday, September 05, 2011

Athanasios T. Ladopoulos
Opalesque Industry Update - 'Swiss Investment Managers' (SIM) will launch the "Directors Dealings Fund" (DDF) in September, the first hedge fund in Europe and US investing solely in the reported share dealings of company directors and senior corporate executives in their own firms.

Investing in listed companies, DDF will base its long or short investment decisions on publicly announced reports of transactions by company directors and senior management who are using their own money to buy or sell equity in their own firms.

SIM's fund managers will employ a counterintuitive approach, using a contrarian interpretation of directors' and managers' share dealings. The strategy has a low 0.2% to 0.4% correlation to equity capital markets and targets low volatility with strong risk-adjusted returns, generating real alpha. The fund is aiming for a risk-adjusted return of around 15%.

DDF is managed by Athanasios T. Ladopoulos, a partner in Swiss Investment Managers, supported by George Muzea, who is considered the "father" of the so-called Director Dealing and Corporate Insiders Transactions strategy, acting as senior advisor. It is a "specialised investment fund" (SIF / FIS), registered in Luxembourg with the CSSF.

The fund will not use leverage or derivatives and thus will have no associated collateral risk. It will invest in large- and mid-cap European and US companies enabling liquidity terms which are expected to make it highly appealing to a broad range of eligible high net worth individuals (HNWI's), family office and institutional investors.

"Directors and executive management team members generally know more about the companies they manage than outsiders, such as broker analysts or fund managers," points out Ladopoulos. "When directors and executives buy significant amounts of shares, that's a strong signal something good will happen. Conversely, when they sell significant amounts of shares, it's a signal of tough times ahead. DDF combines intellectual capital with proprietary investment management mechanisms to analyse such activities and thus is well placed to take advantage of these dealings."

(press release

km

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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Opalesque Roundtable: Emerging managers should avoid chasing 'institutional unicorns'[more]

    Bailey McCann, Opalesque New York: For managers looking to raise a new fund after the crisis, marketing efforts will need to be significantly different, according to delegates at the recent Opalesque Texas Roundtable. "Most of the smaller managers come to the whole fund-raising and marketing

  3. Cohen's private investments deliver strong 7.5% gain in Q1[more]

    From Reuters.com: Billionaire Steven A. Cohen's investments gained 7.5 percent in the first three months of 2015, according to a person familiar with the numbers, helping the former hedge fund manager extend his string of market-beating returns. Cohen's Point72 Asset Management, which invests

  4. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

  5. Opalesque Exclusive: Cyber security and hedge funds: increased awareness, Part One[more]

    Benedicte Gravrand, Opalesque Geneva: If you look at the recent cybersecurity news from Bloomberg, hackers are frightening the people: they steal photos and threaten to expose them, they can break into ATMs, they ha

 

banner