London-based IKOS has launched offshore and onshore variants of its Financial strategy.
The new funds are systematic global macro, aimed at achieving annual excess returns of 18-20% on volatility of 18%.
The programme is entirely automated and trades over multiple time scales, including high frequencies. The offshore class will be listed on the Irish Stock Exchange and the LP will be a Delaware based structure to facilitate US investors.
Demand from existing investors and new prospects led to the creation of this product. In January 2004, IKOS launched a Euro-denominated version of the strategy in response to increasing demand from European investors.
The IKOS Financial strategy started in 1996 and has an eight year track record. It has attracted over USD 700m under management and traded assets under management have doubled over the last five months. This strategy is available on Lyxor and is also part of the investable MSCI index. The fund has daily pricing on Bloomberg and the Irish stock exchange with monthly liquidity.
Martin Coward, Senior Partner of IKOS, said: "As long as there are markets, there will be a need for someone to supply liquidity. As computers and software grow more powerful still, this task of liquidity provision will be almost entirely taken over by a web of interacting intelligent machines, competing with each other to be selected in a virtual world where the fittest is the most efficient liquidity provider. We are seeing more opportunities due to the increasing flows of currencies and financials traded electronically. This allows us to use our technology and tap into new sources of return."
Background Note: Established in 1992, quantitative hedge fund manager IKOS currently manages USD 2.5 billion in strategy assets for clients around the world.