Alternative asset manager Tages Capital (Tages) has launched the Tages Paladin Fund,which it says incorporates an ‘innovative tail risk hedging strategy’.
Tages says the fund is designed to provide investors with protection from a broad range of adverse market conditions globally without the typical burden of negative carry associated with such strategies in upward trending markets.
The Dublin domiciled UCITS fund launched with nearly USD20 million of institutional capital on 31 July 2018. Unlike most tail risk funds, Paladin is not based on a put option strategy but is comprised of a combination of systematic long volatility and convexity, momentum and mean reversion strategies, together with low beta carry strategies to compensate for time decay.
Berouz Fatemi, Portfolio Manager, Head of Alternative Risk Premia, says: “The Tages Paladin Fund uses a proprietary combination of quantitative and qualitative techniques to evaluate and select a portfolio of investable trading strategies and alternative risk premia with clear tail hedge qualities. We follow a disciplined, process-driven investment approach to build a portfolio diversified by strategy, asset class and region, combined with comprehensive daily risk controls. The strategy is designed to target significant upside during times of market stress and volatility, while also providing small positive returns in most market conditions.”
Jamie Kermisch (pictured), CEO of Tages Capital, says: “As one of Europe’s leading alternative asset managers, Tages has a history of developing innovative, next generation solutions for institutional and professional investors. Tail hedge products are increasingly high on the agenda for institutional investors and the development of this proprietary solution is a further demonstration of Tages’ commitment to deliver cutting edge products to meet investors’ needs in all market conditions.”
