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Alternative Market Briefing

Magister Ludi (up 67% in first year) praise ETFs as low cost vehicles, FINRA reverses course on leveraged ETFs

Wednesday, July 29, 2009

From Kirsten Bischoff, Opalesque New York:

For the team at Magister Ludi Capital Management, launching a global macro strategy in July 2008 with under a million dollars in seed capital across two strategies (one conservative, one aggressive), could have meant restricted their access to diverse exposures. But, as Rajinder Sabherwal, CEO and CIO of the firm explained to Opalesque, "ETFs have democratized investing."

Exchange Trade Funds, which have gained users due to their liquid nature, have also been cited for decreasing both costs and counter party risks for the hedge funds that utilize them. The ETF industry has enjoyed immense growth in recent years, and is poised to make substantial gains as cash returns from the market sidelines. "ETFs give us a lot of breadth in a fairly granular manner. They allow us to focus on and access geographies, markets, sectors and subsectors," says Sabherwal.

Next generation fund - utilizing new opportunities in investing The Magister Ludi Fund is launching in August to outside investors after returning 68.50% in its first year (72.21% in the aggressive strategy). Sabherwal refers to it as a "next generation fund", the team's term for an investment approach that seeks to learn from past hedge fund mistakes as well as to deliver the things hedge fund investors are newly focused on (ie, strategy breadth, limited leverage, risk management,......................

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