Sun, Nov 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

RPM and Privium sign deal to offer a basket of ‘Evolving’ CTA’s in The Netherlands

Thursday, August 15, 2013
Opalesque Industry Update, for New Managers - CTA specialist RPM and asset manager Privium Fund Management are set to launch a new fund for Dutch investors. The “Evolving CTA Fund” provides exposure to a portfolio of largely untapped smaller and innovative CTA managers across three sub strategies: trend-following, short-term and fundamental. The fund is developed in response to growing concerns over asset concentration and deteriorating returns from very large and well known CTAs.

RPM Risk & Portfolio Management has roughly $4bn in funds under management and advisory. RPM concluded, based on thorough research, that CTAs in their “evolving phase”, are the most promising from a risk/return perceptive. These CTA’s are typically between two to seven years of age with $30million to $2billion in AuM – depending on investment strategy. Historically, Evolving CTAs have outperformed their larger peers by 3% per year at an equal 10% volatility, the RPM study found.

The fund will be benchmarked against the Barclay BTOP50 index, which tracks 20 of the largest and most wellknown CTAs. The fund will be domiciled in The Netherlands and will invest in the Luxembourg-based RPM Evolving CTA Fund (SICAV) It offers daily liquidity, a unit size of 1.000,- with a minimum subscription of Euro 25,000.- and is managed by AFM regulated investment manager Privium Fund Management. Investors will have full web based transparency on: risk, returns, underlying managers, exposure levels and more.

RPM's CEO Mikael Stenbom commented : "We seek to identify and invest with CTAs who demonstrate potential to develop into the next generation of industry leaders. The aim is to find them before they become too large, or too old, to maintain the level of return that typically occurs during the first 2-7 years of a CTAS existence. The fund is the result of a research work that began in 2010 and that can be best described as a systemization and verification of the experiences we have made during our twenty years as investors and risk manager of CTA world.

Clayton Heijman, director of Privium Fund Management commented: “Today's large and well-known CTAs were unknown to most investors when their performance was at its most competitive. The "Evolving CTAs" have demonstrated a unique expertise and ability to generate returns, in many cases with new, innovative ideas and methods.

An asset manager develops like most other companies: a start-up phase followed by a growth phase with strong competitiveness. As they move into maturity, their competitive edge gradually deteriorates. A few have the ability to renew themselves, others fade away. Unfortunately, most investors are attracted to them at the peak in their life cycle. This fund focuses on managers that have entered into the growth or “Evolving” phase.
(press release)

PD

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. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  2. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  3. Investing - George Soros puts $500m of his money on Bill Gross, Soros, Paulson backed Hispania Activos mulls Realia takeover, Ex-Credit Suisse trader’s hedge fund sees yen shorts as crowded, Hedge hunters double default-swaps as views split, Large hedge fund positions come under pressure, Vikram Pandit's fund picks 50% stake in JM Financial's realty lending arm for $87m[more]

    George Soros puts $500m of his money on Bill Gross From WSJ.com: Before Bill Gross was fully settled in at his new firm, Janus Capital Group Inc., he received an unlikely visit from the chief investment officer of famed investor George Soros ’s firm, according to a person familiar with t

  4. Opalesque Exclusive: Gray Ghost Ventures aims to make impact investing commercially viable[more]

    Bailey McCann, Opalesque New York: At a time when investing in emerging markets may be falling out of fashion among some investors, Gray Ghost Ventures is confident that great opportunity exists in the emerging markets. The firm may have a unique view into this space as one of the first private

  5. Gross: Inflation is required to pay for prior inflation[more]

    Benedicte Gravrand, Opalesque Geneva: As inflation rises, every dollar will buy a smaller percentage of a good. While deflation will mean a decrease in the general price level of goods and services. These two economic conditions are both in the waiting room. The consensus would like the former to