New Trend Fund Management, a Cayman Islands based investment manager, is launching its first hedge fund, the New Trend US Equity Fund.
The fund aims to produce high absolute returns over each market cycle using a trend following long/short strategy.
The strategy is driven by an algorithm, removing the challenges of human biases. It identifies promising investments using an automated process to screen for trending US stocks.
The portfolio, when fully invested, will hold 30-50 active positions with no more than ten per cent held in a single position.
The fund is managed by Steven Granot and Marc von Rohr. Granot was previously director of US equities at UBS and vice president of US equities at JP Morgan, while von Rohr was director of Asian equities at UBS and proprietary trader for First New York Securities.
Laven Partners, the London based investment management consultancy, advised on the fund and management company’s incorporation, prospectus and CIMA registration in the Cayman Islands as well as on the incorporation of the fund’s Swiss investment adviser, New Trend Capital Partners. Laven Legal Services, the associated law firm of Laven Partners, provided assistance with legal implementation and documentation.
Granot says: “Our proprietary algorithm analyses large quantities of data and removes emotion from investment decisions. It remains constant through all market conditions, providing stability and reliability as we seek to identify emerging trends and increase exposure as the trend continues. The algorithm also provides a system of stop losses which is an important part of our rigorous risk management process.”
Jérôme de Lavenère Lussan (pictured), founder and chief executive of Laven Partners, says: “Liquidity is a high priority for today’s investors; the fund will seek to invest in highly liquid underlying investments to ensure it can match investors’ requirements. The fund also meets the demand for transparent fund structures, with an external auditor and administrator in place to ensure added security for investors. These structural benefits combined with Steven and Marc’s knowledge and experience, particularly in US equities, should appeal to investors focused on long-term returns.”
