Quaesta Capital AG, has launched its FX-Multi Manager Program (FX- MMP), a Cayman offshore fund of hedge funds managed by Quaesta Capital AG.
This single asset class, multi manager Alpha program, which selects and invests into single currency hedge funds and CTA's on a global basis, has substantial seed capital from a well-known Swiss based family office and already has attracted additional investors.
FX-MMP combines quantitative excellence with the professional experience and know-how of Quaesta Capital's team members.
"This niche product is well suited for a wide range of investors viewing Currencies as a separate asset class in their investment portfolio," says Martin Wiedmann, CEO & Partner of Quaesta Capital. "Through diversification on various levels, a significant risk reduction takes place. Out of the 200 global hedge fund managers in Quaesta Capital's FundRiskBase, our portfolio allocation model dipCast selects and allocates the relevant programs for the FX-MMP."
Together with a thorough due diligence process a final allocation of typically 10 selected single managers takes place and It is the goal of the FX-MMP fund to generate positive performance while demonstrating low correlation to stock and bond markets.
The proactive managed fund will invest in single hedge fund strategies and styles, such as Fundamental, Technical, Discretionary and Systematic, as opportunities arise.
A thorough qualitative as well as quantitative analysis takes place for each single hedge fund (SHF). During the qualitative analysis, emphasis is placed on the manager selection as well as corporate governance & risk management of the SHF.
The quantitative analysis concentrates on the strategies and styles of the SHFs, investigating past performance, distribution of returns, risk sensitivities as well as correlations to other SHFs with similar strategies and styles. In addition the stability of performance in extreme market conditions is analysed.
For the portfolio management, Quaesta Capital utilizes dipCast, developed in cooperation with the University of Dortmund artificial intelligence department, which has been specifically designed for hedge fund management.
The fund, which is seeking to return a medium term performance of 8 per cent (not a guarantee) and a volatility of 4 to 7 per cent per year, is due to go live by the end of the 2005.
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