Primores AG has launched the PrimFund Growth Segregated Portfolio, a fund consisting of leading high-return funds of hedge funds.
The new fund follows the successful launch of PrimFund Diversified last year, a conservative, low volatility fund.
Established as a Cayman Islands segregated, portfolio company, PrimFund Growth, which is not available to US investors, offers institutions and high net worth investors access to a selected portfolio of high return funds of hedge funds and offers separate USD, EUR and CHF currency-hedged tranches.
Designed to produce consistent double-digit returns in the mid teens, Primores claims that the fund offers an outstanding opportunity for the discerning investor who wishes to attain superior returns while limiting the downside risk, and that it is a unique blend of the best of breed high return and leveraged funds of hedge funds.
The costs are 0.25 per cent management and 10 per cent performance fee.
Remo Kraenzlin, managing partner of Primores AG, said: "There are two ways to achieve higher returns in a fund of hedge funds compared to broadly diversified, "index-type" products. The two options are: focus on strategies and funds with top return potential; or apply leverage to the portfolio. PrimFund Growth allocates to the best of the two worlds, an optimal balance between high return and leveraged funds of hedge funds."
Armin Vogel, managing partner of Primores AG, added: "High return and leveraged low volatility funds of hedge funds have complementary characteristics. This preserves the return potential in the mid teens while reducing the downside risk dramatically. This fund offers a unique opportunity to achieve double digit returns with low volatility. And it comes at no additional costs as rebates are fully credited to the fund."
Background notes: Primores AG is an independent research and advisory firm, based in Zurich (Switzerland), fully dedicated to the fund of hedge funds universe. It constructs, monitors and manages diversified portfolios of fund of hedge funds and provides investment services to institutional investors and high net worth individuals globally.