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Alternative Market Briefing

May's market volatility generates alpha for Global Sigma Plus

Wednesday, June 29, 2011

amb
George Soros
From Komfie Manalo, Opalesque Asia:

While most funds suffered negative losses from the highly volatile markets in May, emerging market manager Global Sigma Plus, a CTA managed by Delaware-based Global Sigma Group, LLC enjoyed positive gains during the month.

In fact, Dr. Hanming Rao, Chief Investment Manager at Global Sigma, said the fund's program of employing a short term option strategy actually offers the best risk reward in volatile markets to generate alpha. The more shaky the market is, the better it is for the fund to provide positive returns for its investors, Rao told the Opalesque in an exclusive interview.

And Rao has the facts to prove it. In May, Global Sigma Plus returned a net performance of 1.99% after deducting the standard 2% and 20% fees.

"Higher volatility provides the program more trading signals and in general we expect higher return under such situations," he explained. But Rao has been very modest in insisting to investors that past performances are not an indication of future results.

Since its launch in November 2009, the fund never had a negative month. All its monthly results have generated positive earnings. The fund closed 2009 up +3.57% and 2010 up +23.25%. The fund's target of producing an annual yield of between 20-25% returns was achieved last year. It's year-to-date performance is a convincing +7.98% and Rao is confident the fun......................

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