Curacao-based Magnum has launched a leveraged version of its Magnum Bull & Bear Fund, a fund of funds that gives investors access to hedge fund strategies seeking profits in both bull
Curacao-based Magnum has launched a leveraged version of its Magnum Bull & Bear Fund, a fund of funds that gives investors access to hedge fund strategies seeking profits in both bull and bear markets.
Since Magnum Bull & Bear Fund’s inception in October 1999, the fund has gained 105.5% through November 2007 with a standard deviation of only 5%, and with very low correlation to global stock and bond markets. During that same period, the S&P 500 Index has only gained 15.5%, the MSCI World Index (in US$) has gained 32.5% and the NASDAQ Composite Index has lost 3.1%, all with significantly more volatility.
The new Magnum Bull & Bear Enhanced Fund, utilizing up to 50% leverage, will increase the strategy’s expected return while only slightly increasing the expected volatility. Since Magnum Bull & Bear Fund’s inception in October 1999, the fund has handsomely out-performed all benchmark indices by substantial margins with significantly less volatility.
"The new Enhanced Fund is ideal for investors looking for slightly higher returns than Magnum Bull & Bear Fund while keeping the non-correlated nature of returns and relatively low volatility still in place," says Dion Friedland, Magnum chairman.
The Enhanced Fund seeks consistent returns of 15% to 25% per year with low correlation to stock and bond markets by investing with many of the world’s premier investment professionals and hedge funds that hedge against market downturns while attempting to benefit from market advances.
Funds invested in include merger arbitrage funds, lower volatility long/short equity funds, trading funds, event driven/special situations funds, market neutral equity funds and other complimentary funds generally not correlated to stock or bond markets. Many of the investments made by the hedge funds and other investment vehicles in which Magnum Bull & Bear Enhanced Fund invests are event-driven and tend to be independent of the direction of equity or bond markets.
