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Alternative Market Briefing

Insch Capital Management’s Goldilocks gold fund up +3.50% in August (+11.61% YTD)

Thursday, September 08, 2011

From Komfie Manalo, Opalesque Asia:

Alternative investment manager Insch Capital Management AG’s commodity hedge fund Insch Goldilocks has proven that gold is the ultimate safe haven during volatile times after it returned +3.50% in August (+11.61% YTD). Goldilocks has been showing positive performance since April when it was +5.40%, +0.70% (May), +0.55% (June), and +2.11% (July). Compared to Dow Jones Credit Suisse, Hedge Fund Indexes which was down -0.27% last month (-4.02% YTD).

In its communication to investors, Insch Capital Chief Executive Officer Christopher L. Cruden said, "Goldilocks has comfortably beaten every single category of hedge fund and every single index."

However, there are two other aspects to the Goldilocks structure that make it of special interest:

Return on Capital at Risk:

  • 90% Capital Protection implies: ROCAR = 10x Return on Goldilocks = 103.3% since inception
Loan-to-Value:
  • The cash invested in a portfolio of Gold Notes should receive a Loan-to-Value of 70%
  • On the cash in the current account and/or subject to FX trading, a Loan-to-Value of 80% is applied
  • This implies an average Loan-to-Value of Goldilocks of 72%

From the start of August, markets were shaken by fears of a global meltdown in equities and b......................

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