Crinan Capital, a private hedge fund company, has launched the Crinan Stability investment fund.
The absolute return fund has been designed to hedge existing exposure to equities and property by investing in a portfolio of carefully selected futures.
The fund intends to raise GBP25m of initial subscriptions without limit on total fund size and aims to deliver a target return of ten per cent compound annual return regardless of market conditions.
The fund uses a proprietary system-driven investment style which decides when to enter and exit trades based on a pre-established and predefined model. Developed and refined over seven years the system combines mathematical rules which enable both precise asset allocation and profitable positions freedom to accumulate, while strict risk management cuts losses.
The fund is a limited partnership with a life of five years. It is eligible for investment via Sipps, Ssas and direct investment with a minimum subscription of GBP25,000. The asset manager is co-investing GBP400,000 alongside the limited partners.
Gareth Abbot, Crinan Capital chief executive, says: “The fund has been structured as a ‘missing link’, to stabilise a traditional investment portfolio by neutralising stock market losses, and offsetting pressures on the property market and wider economy.
“Although structured in this manner, the fund will deliver absolute capital growth through broadly diversified investments that offer robust performance in any economy.
“Our fund assists sensible financial planning and will play an important diversification role building a robust investment portfolio.”
