Finles Capital Management is launching a fund on 31 March that applies a global macro strategy with a focus on absolute returns.
Finles Capital Management is launching a fund on 31 March that applies a global macro strategy with a focus on absolute returns.
The Finles Liquid Macro Fund will use the HFRX global macro hedge fund index (USD) as a benchmark.
It will focus on OECD and Bric countries and will predominantly invest in securities (both equity and fixed income) of companies with a market cap of more than USD500m.
Not more than ten per cent of the fund can be invested in securities of companies with a market.
The firm says the product has a daily NAV and daily liquidity, a low cost structure and no leverage. The fund offers diversification to both traditional and alternative portfolios.
The volatility of the portfolio is limited to a maximum of ten per cent per annum. Volatility will be measured as rolling annualised volatility on a 24 month basis.
Risk will reduced by 50 per cent if the fund loses more than three per cent in a month. The fund will go to cash if it loses more than five per cent in a month.
The maximum net sector and net country allocations, based on individual stock and bond positions, are 25 per cent each.
The combined maximum net long exposure in equities, commodities and precious metals is 70 per cent, while the maximum net short exposure is -50 per cent.
