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Alternative Market Briefing

New Zealand-based quant manager Pure Capital launches protection service against CTA draw-downs

Thursday, December 09, 2010

By Florian Guldner, Opalesque:

Pure Capital, a New Zealand-based quantitatively-driven investment manager specializing in 'targeted non-correlation' has announced the launch of a new advisory service called 'CTAllocate'.

According to Pure Capital, CTAllocate is a service designed to help wholesale/institutional CTA investors enhance, as well as protect their portfolio performance by 'timing' exposure to the CTA asset class - an asset class with strong long-term performance metrics, useful non-correlation benefits and favorable liquidity characteristics.

The principal draw-back to CTAs is the sometimes substantial draw-downs that come with the strategy. CTAllocate will help investors minimizing their exposure to these draw-downs as well as providing potential windows within which they may choose to re-invest back into CTAs.

In exchange for a monthly fee, investors will get advance warning by up to 2 weeks on what may be important timing points. The service will be a combination of analysis available online through the Pure Capital Client Portal - and email alerts.

Anthony Limbrick, Chief Investment Officer at Pure Capital said "the CTAllocate service will allow investors to have greater confidence in a long term strategic asset allocation to CTAs in the knowledge that they may improve the probability of missing at least some of the inevitable losing periods that come with the strategy". Corporate website:......................

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