Meritage Capital has launched its first alternative mutual fund, The Insignia Macro Fund, which seeks long-term risk adjusted return by employing global macro-managed futures investment strategies.
The fund differs from other liquid alternative macro offerings primarily because of its allocation to discretionary focused managers.
The Meritage team has over 50 years of collective experience dynamically allocating capital to global macro managers across a variety of investment styles.
"Investors in the Insignia Macro Fund will be able to access a flexible investment approach designed to capitalise on investment strategies that are generally uncorrelated to equity markets and which we believe tends to dampen portfolio volatility while reducing risk,” says Joe Wade, chief investment officer of Meritage.
According to Hedge Fund Research, global macro strategies were one of the top performing investment strategies in 2007 and 2008, during which many investors suffered losses from over-exposure to equity markets.
The fund provides exposure to underlying managers who employ a variety of global macro trading strategies including discretionary and systematic across numerous markets. The fund will generally overweight discretionary managers. Managers who employ discretionary strategies generally invest based on fundamental research and specialised market knowledge, among other factors, including technical indicators or chart patterns. Managers who employ systematic strategies generally exploit trending behaviour of futures markets over various time frames by using quantitative systems.
“Our experience over the last 10 years has demonstrated that an allocation to global macro strategies can benefit investors,” says Wade. “We believe offering this 1940 Act-Registered Fund will allow all investors to access the portfolio diversification benefits possible in global macro investing.”