IKOS launches Financial Fund Euro Class/Headline
In response to increasing demand from European investors, IKOS has
launched a Euro-denominated version of its global macro strategy, the IKOS
Started in 1996, the strategy has an eight-year track record and has attracted
over USD 300m under management. Capacity of the strategy is USD 2billion.
Since its January 2004 launch, the fund is up + 7.4%.
To satisfy demand for a higher return product than previously offered, the new
Euro Class will be launched at double the leverage of the Dollar Class. With a
consequent volatility of 20%, IKOS expects returns in excess of 20%pa. This
places the product in very much the same risk/return profile space as much of
its peer group, demonstrating historic average returns of 18%pa. The Fund will
be listed on the Irish stock exchange.
IKOS, which specialises electronic equities trading, stated: "We have been able
to implement system developments over the last 2 years to enable high
frequency trading in the futures markets. The effect has been two-fold: Higher
Sharpe Ratios have been generated (1.4 and 1.2 over the past 12 and 24
months respectively) and decreased correlation between IKOS and other
managers in this sector."
Correlation is expected to further decrease, given that IKOS constantly searches
for inefficiencies at shorter timescales.
With a major investment in ongoing research, IKOS stated that it is "positioning
itself to be a significant player in the Managed Futures sector. IKOS has just
added another member to its portfolio management team dedicated to the
Financial program. IKOS Research is currently in the process of hiring three
new researchers to add momentum to our research effort and so increase the
rate of model implementation across all strategies."
The IKOS Financial Fund applies a wholly systematic trading approach to a
portfolio of financial markets, with a significant feature being the high frequency
nature of its trading. IKOS has capitalised on the shift towards electronic
markets and the technology available to build automated execution platforms,
making it one of very few managers operating in this niche.
The Euro Class is issued as a separate class within IKOS' Cayman Island,
multi-class feeder fund and has been seeded with an initial trading capital of
EUR7million. The minimum investment is EUR 500,000 and fees are 2%
management and 20% performance.
Background Note: IKOS, established in 1992, was one of the first independent
hedge fund managers to be registered by the FSA in London and is a NFA
registered CTA/CPO and members of AIMA and the MFA. The company
employs 30 people, including a strong research team, of which 8 have PhDs in
mathematical disciplines. IKOS continues to develop its business on the belief
that advanced mathematical models and enhanced computer power are the
keys to achieving consistent investment returns over time.