Magnum Fund Management Ltd. has launched the new Magnum Optimized Portfolio Fund (a fund of hedge funds) in conjunction with Ibbotson Associates Advisors LLC and GP Asset Management LLC. Ibbotson serves as a consultant to the fund.
The new fund, which invests in a selection of hedge funds, integrates Ibbotson's proprietary quantitative models with Magnum's qualitative expertise and market experience to select best-of-breed hedge fund managers and determine the optimal diversification strategy and manager allocations.
Seeking consistent returns of between 10% and 18% per year with relatively low volatility, the fund screens over 5,000 hedge funds globally to identify 15-25 "best of breed" managers.
Quantitatively, it relies on Ibbotson's extensive experience in analyzing performance and risk and hedge fund of fund portfolio optimization. Ibbotson has developed a proprietary portfolio optimization methodology, which allows for a more accurate assessment of hedge fund performance even than traditional methods.
Qualitatively, the fund benefits from Magnum's access to research and industry information and years of experience to identify successful hedge funds around the world. Magnum's analytical edge and experience designing and managing funds of hedge funds enables it to build funds that minimize risk while providing positive, stable, long-term returns under most market conditions.
Magnum has been rated as the Best Hedge Fund Manager of the Year by Standard and Poor's Micropal, and has also been rated as having many of the best performing funds of hedge funds in the world over 1, 3 and 5 year periods by Lipper and MAR.
The new Magnum Optimized Portfolio Fund is available to non-U.S. investors and U.S. tax exempt investors.
Background Note: Ibbotson Associates, founded by Professor Roger Ibbotson in 1977, is a leading authority on asset allocation, providing products and services to help investment professionals obtain, manage and retain assets. The company's business lines include investment consulting and research; planning and analysis software; investment advice; educational and marketing services and a widely used line of NASD-reviewed presentation materials. With offices in Chicago, New York and Tokyo, Ibbotson Associates markets its integrated product line to institutional money managers, insurance companies, plan sponsors and consultants, financial planners, brokers, mutual fund firms, hedge funds, banks and small money managers.
GP Asset Management, LLC (GPAM) creates and distributes "best-in-class" alternative investment products that aim to deliver consistent risk-adjusted returns across all market conditions. Since 1987 GPAM has aimed to recognize and cultivate exceptional trading talent, allowing the company today to serve as a bridge between seasoned and start-up hedge fund managers and new sources of investment capital.
Magnum, founded in April 1994 by its chairman, Dion Friedland, specializes in identifying the leading hedge funds in the world and combining them into funds of hedge funds designed to deliver targeted levels of return for given levels of risk. Magnum offers nine offshore funds of hedge funds, two offshore feeder funds and two funds of hedge funds that are Limited Partnerships for U.S. taxable investors. Magnum also customizes funds of hedge funds for private banks, brokers, pension funds, institutional investors and wealthy families and individuals, lending its investment expertise to major financial decision-makers.