Mon, Apr 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

The Simple approach to hedge funds beats HFRI fund of fund index return

Wednesday, November 14, 2012
Opalesque Industry Update - Simple Alternatives, LLC's launched the S1 Fund as a simple approach to a portfolio of hedge fund managers two years ago.

"Two years ago we created the S1 Fund to provide wealth advisors, and their clients, a better way to access a portfolio of hedge fund managers than the traditional limited partnership structure could provide,” said James K. Dilworth CEO and Founder at Simple Alternatives. “Obvious limitations with the limited partnership structure including the lack of liquidity, transparency, and relative high cost present significant obstacles for hedge fund investors to navigate.”

“The S1 Fund uses the mutual fund structure to deliver access to the same premier long/short hedged managers while providing the added benefits of daily liquidity, daily pricing, and a layer of regulatory oversight previously unavailable to hedge fund investors," added Dilworth.

For the two year period ended 9/30/12, S1 Fund had a return of 1.50% versus a 0.94% return for the HFRI Fund of Funds Composite Index. YTD through October 31, 2012, S1 Fund had a total return of 4.61%, compared to a 2.95% return for the HFRI Index, while maintaining a beta of approximately one quarter the S&P 500 Index.

Dilworth concluded that it was not surprising the S1 Fund has outperformed the hedge fund of funds index1 benchmark and, “our two year track record confirms our belief that it is possible for traditional hedge fund investors to achieve improved returns using the more investor friendly mutual fund structure.”

S1 Fund employs premium hedged equity managers who seek to preserve capital, lower volatility, and generate superior risk-adjusted returns. Simple Alternatives believes that small-to mid-sized managers with demonstrated short-selling experience are most likely to outperform over a full market cycle. SONEX seeks to deliver an absolute return with one-third the volatility of the equity markets as measured by the S&P 500 Index.

The S1 Fund is managed and advised by a team of leading hedge fund professionals, experienced in managing the assets of endowments, foundations, corporations, pension plans, RIAʼs, banks and high net worth individuals.

Press release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
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. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably