Channel Islands Alternatives, a Guernsey-based fund of hedge funds manager, has announced continued positive performance returns for its Hurdle fund of hedge funds.
The fund, launched in July 2006 maximises exposure to alternative alpha, controls the exposure to alternative beta, and minimises the impact of traditional market beta, according to fund manager Nick England.
'We run the fund by investing and redeeming with a forward-looking perspective of between three and six months,' he says. 'This means that we are seeking to pre-empt likely scenarios and position the fund accordingly.
'We actively avoided the full upside of market beta in the recent period, and reallocated the fund in advance of this crisis. This has enabled us to keep producing positive returns together with much lower volatility than that of the HFRX Global Hedge Fund Index.'
To minimise correlation between managers and reduce the level of drawdowns, the fund invests across a wide variety of asset classes, strategies and investment time frames. At present the CIA Hurdle Fund is fully invested with zero per cent exposure to cash.
Over the 10 months to the end of October, the fund has returned 3.49 per cent, compared with a decline of 19.78 per cent for the HFRX Global Hedge Fund Index.
England adds: 'We expect considerable growth in assets under management as investors move their assets from failing funds into the funds of funds which keep providing decent returns and adding alpha, despite current severe market conditions.'