Tue, May 26, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Emerging manager Parplus Partners argues investors should only pay fees when funds outperform

Wednesday, July 10, 2019

Bailey McCann, Opalesque New York for New Managers:

Should investors only pay fund managers when they outperform? One emerging hedge fund manager says yes. Parplus Partners, a New York-based hedge fund manager, argues that investors should only pay fees when funds beat the market.

"We think investors should only have to pay if we're providing a service. That service is beating the S&P500," says Parplus founder and CEO Jim Carney. Investors in Parplus only pay fees when the firm's flagship fund beats the S&P500.

Parplus invests long on S&P 500 index positions, with a small portion of the fund's portfolio set aside for volatility trading through VIX options and VIX ETFs.

According to Carney, the combination of being long S&P500 beta coupled with volatility strategies is designed to provide a positive total return to investors. Carney was previously a proprietary trader and built the strategy around his background in volatility trading. He uses that background to identify opportunities for buying and selling volatility. If there aren't any, investors realize returns from being long the S&P500. "The biggest players in what we do used to be the banks, but they've been stopped from doing it because of changes in regulation," Carney explains.

The strategy is designed to be more patient than many of the tactical hedge funds it competes against. The willingness t......................

To view our full article Click here

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. Tiger Global tops the list US-based venture capital market[more]

    Laxman Pai, Opalesque Asia: Tiger Global Management holds on to its position as market-leader in US-based venture capital, said a study. According to Preqin, the closure of tech-focused Tiger Global Private Investment Partners XII in January means the New York-based firm has raised more than

  2. Investing: Hedge funds headed to quarantine stocks in first quarter turmoil, Greenlight's David Einhorn added a bunch of new stocks to his fund, U.S. funds rush to tech companies and battered energy stocks in first-quarter, Millennium among hedge funds to bet on virus vaccine hunters, David Tepper reveals a stake in Twitter. Here's what else the market mover is betting on, The stay-at-home and software stocks that Chase Coleman's Tiger Global is betting on now, Hedge funds pile into tiny biotech that's already soared 460%[more]

    Hedge funds headed to quarantine stocks in first quarter turmoil From Bloomberg: As the world began to go into lockdown, the biggest money managers loaded up on quarantine stocks. Netflix Inc., Peloton Interactive Inc., Amazon.com Inc. and Zoom Video Communications Inc. were some of

  3. Tech: Cybersecurity lapses tick up among investment advisers, Will we see another dot-com crash in tech?[more]

    Cybersecurity lapses tick up among investment advisers From PIonline.com: More than a quarter of state-registered investment advisers had deficiencies relating to cybersecurity, state examiners found. In 41 U.S. jurisdictions from January to June 2019, state examiners found cyberse

  4. PE/VC: Big VCs stacked billions in Q1 while smaller firms saw their haul shrink, COVID-19's potential impact on venture capital investment terms, Ten predictions for how COVID-19 will transform private equity[more]

    Big VCs stacked billions in Q1 while smaller firms saw their haul shrink From Tech Crunch: After spending perhaps more time than we should have recently trying to figure out what's going on with the public markets, let's return to the private markets this morning, focusing in on venture

  5. Tech: Fintech startup Brex closes $150m in pure venture funding amid recession[more]

    From Business Insider: Brex, the 3-year-old fintech unicorn, raised an additional $150 million in equity funding from existing investors and Lone Pine Capital, the company announced Tuesday. The cash infusion raised the startup's valuation to "around the $3 billion mark," cofounder and co-CEO Henriq