The Laven Funds Multi Strategy SPC Fund returned 3.98 per cent in 2008, outperforming most hedge fund indices as measured by benchmarks such as the Credit Suisse/Tremont Multi Strategy
The Laven Funds Multi Strategy SPC Fund returned 3.98 per cent in 2008, outperforming most hedge fund indices as measured by benchmarks such as the Credit Suisse/Tremont Multi Strategy Index, which was down 23.63 per cent over the same period.
The Multi Strategy SPC Fund is a multi-strategy fund of funds investing in hedge funds focused on returns with low correlation to bonds and equities, alpha generation and low volatility.
Laven says the strong performance in 2008 comes from investments in CTA/managed futures funds and asset backed lending funds.
The fund applies the premise that an investment in a hedge fund should be based on similar scrutiny that is applied to venture capital investments. To ensure solid investments, each hedge fund undergoes strict initial pre analysis due diligence. Once managers have been selected, they undergo extensive operational due diligence, including management/advisory firm checks, registration and background checks, review of service providers and legal documentation, offshore structures and independent risk monitoring.
The fund is managed by Laven Partners Asset Management, a British Virgin Islands-domiciled company regulated by the BVI Financial Services Commission.
It targets an annualised return of ten to 15 per cent with a volatility of five per cent. It has a minimum investment of USD100,000 or its equivalent for the EUR share class. There is currently zero per cent management fees and the performance fee is ten per cent based on a highwatermark.
Jérôme de Lavenère Lussan, director, Laven Partners Asset Management, says: ‘The fund has performed well despite the hedge fund industry facing one of its worst years in 2008. The fund exemplifies the importance of good due diligence, which given recent events is very important when using a fund of funds approach. All managers undergo a strict pre-analysis stage, which acts as an initial filter for set investment guidelines.
‘We believe that consistent decorrelated returns can be found when investing in managers with proven investment talent, a focused business approach, disciplined risk management and an obsession about generating risk adjusted alpha.’
