PdMV Capital has launched its first Fund of Hedge Funds, PdMV hedge Diversified -- the PhD Fund - which is aimed at institutional investors.
The fund is designed to attract investors with portfolios negatively impacted by lower real (inflation-adjusted) yields in the bond markets, who are seeking double digit absolute returns with low correlation to the equity markets.
The portfolio construction required to match these objectives necessarily involves a diverse range of strategies including a substantial allocation to commodity trading and European long/short equity investing. These two facets, respectively position the Fund to benefit from the continuing Chinese growth and the corporate restructuring in Europe, with the export sector being helped by a weaker euro. Pro-forma returns for the 12 months to October demonstrate the strength and potential of this structure:
"The PhD Fund is designed to deliver superior risk adjusted returns meeting the requirements of a wide range of institutional investors," says Paolo di Montorio-Veronese, CEO of PdMV Capital. "The expectations of lower real (inflation-adjusted) yields in bond markets and the increasingly volatile equity markets are inducing investors to look to alternative assets for the strong absolute returns they need.
"We firmly believe PhD Fund will be one of the chosen few and are expecting to raise USD 100 million initially; we have registered an early interest from institutional investors in continental Europe and in Asia-Pacific."
The fund, which was registered on 23November 2005,with the Bermuda Monetary Authority, will be available in two dollar-denominated classes. The first will have a minimum investment of USD 5 million, and the second USD 500,000. Both will offer quarterly liquidity.
PhD Fund Performance (Pro-forma figures to October 2005):
• Annualised performance 16.6 per cent
• Annualised volatility 5.1 per cent
• Sharpe ratio 3.1
• Sortino ratio 2.7
• Beta (correlation to equity market) 0.07
For more information on funds of hedge funds, please click here