Fund manager Peter Lucey is planning to launch a new risk mitigation fund, Bull & Bear, on 1 October.
Although only 30, Lucey (pictured), already has nearly a decade of fund management experience. After building his previous fund, Arsenal Advisors from the ground up, and a stint at Morgan Stanley, his new offering is a risk mitigation fund, which he says is ‘uncorrelated to the overall economy, and seeks to drive a conservative return in both up and down markets’.
The new fund is designed to offer investors risk/return characteristics that are different from traditional long-only equity or fixed income strategies. Bull & Bear will aim to provide diversification & uncorrelated returns irrespective of the market environment, and the investment team believes that incorporating the fund’s mitigating strategies in a balanced portfolio may reduce overall exposure to market movements by focusing on idiosyncratic sources of return.
The fund’s objective is to preserve wealth, and achieve risk-adjusted returns from investing across a diversified range of liquid, repeatable, and uncorrelated strategies. To achieve the top priority of preserving clients wealth in any economic condition, the fund is targeting a net annualised return of 6-8 per cent, with only of 3-4 per cent max downside risk; which is compared to the average S&P500 downside risk of 15-17 per cent (Dalibar Annual Report).
In addition to helping clients, Bull & Bear says part of the fund’s mission is to ‘empower others and making a difference in the community through philanthropic initiatives’. For this reason, the fund has created a platform to partner with local and national charities focused around involvement, contribution and awareness.
The fund has no lock up periods, and is liquid at any time for investor redemption with a 30-day advance notice.
