Peak Partners is launching Mont Blanc Select, a new fund of hedge funds that specialises in asset-based lending and other collateralised strategies.
Mont Blanc Select, which is scheduled to launch on 1 July 2006, invests in specialised hedge funds focusing on collateralised and secured securities in which the borrower pledges particularly valuable assets as collateral. The core advantage of these strategies is that they are extremely insensitive to secondary market risk.
'We have been successfully investing in asset-based lending and other collateralised hedge fund strategies for more than three years now,' says Ernesto Prado, chief investment officer of Peak Partners and portfolio manager of the fund. 'The investments have returned extremely stable performances with very low volatility. More importantly, results have consistently shown negative correlation with other hedge fund strategies. However, investing in these strategies requires both strong knowledge and stringent due diligence paired with a deep understanding of the underlying risk factors.'
Mont Blanc Select is the first Luxembourg Part II SICAV specialised in these strategies. The objectives of the fund, which is denominated in US dollars, euro and Swiss francs, are an annualised return of 8 to 12 per cent after fees, with very low average volatility and very low to negative correlation to both traditional asset classes and other alternative strategies. The portfolio will be highly diversified across non-correlated ABL and collateralised strategies