Mentor Capital says its lead hedge fund has had no redemptions during the financial crises and continues its long-term record of outperforming the S&P 500 by approximately 15 per ce
Mentor Capital says its lead hedge fund has had no redemptions during the financial crises and continues its long-term record of outperforming the S&P 500 by approximately 15 per cent.
It says institutional investors find a measure of safety in the lead fund because it is debt-free with no exposure to financial companies, sub-prime or mortgage related securities.
In contrast to Mentor Capital’s lead fund, redemptions in approximately 95 per cent of other hedge funds are reported to average 28 per cent, the company says.
Each USD150 in redemptions at typically leveraged hedge funds requires stock sales of approximately USD400 from only the liquid portions of their fund portfolio.
Mentor Capital says their forced sales become bargains for its fund to purchase at discount.
The company is currently moving through the process of raising USD145m in stepped secondary offerings already approved.
