PdMV Capital has launched its first Fund of Hedge Funds, PdMV hedge Diversified — the PhD Fund – which is aimed at institutional investors.
The fund is designed t
PdMV Capital has launched its first Fund of Hedge Funds, PdMV hedge Diversified — the PhD Fund – which is aimed at institutional investors.
The fund is designed to attract investors with portfolios negatively impacted by lower real (inflation-adjusted) yields in the bond markets, who are seeking double digit absolute returns with low correlation to the equity markets.Â
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The portfolio construction required to match these objectives necessarily involves a diverse range of strategies including a substantial allocation to commodity trading and European long/short equity investing. These two facets, respectively position the Fund to benefit from the continuing Chinese growth and the corporate restructuring in Europe, with the export sector being helped by a weaker euro. Pro-forma returns for the 12 months to October demonstrate the strength and potential of this structure:
“The PhD Fund is designed to deliver superior risk adjusted returns meeting the requirements of a wide range of institutional investors,” says Paolo di Montorio-Veronese, CEO of PdMV Capital. “The expectations of lower real (inflation-adjusted) yields in bond markets and the increasingly volatile equity markets are inducing investors to look to alternative assets for the strong absolute returns they need.
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“We firmly believe PhD Fund will be one of the chosen few and are expecting to raise USD 100 million initially; we have registered an early interest from institutional investors in continental Europe and in Asia-Pacific.”Â
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The fund, which was registered on 23November 2005,with the Bermuda Monetary Authority, will be available in two dollar-denominated classes. The first will have a minimum investment of USD 5 million, and the second USD 500,000. Both will offer quarterly liquidity.Â
PhD Fund Performance (Pro-forma figures to October 2005):
• Annualised performance 16.6 per cent
• Annualised volatility 5.1 per cent
• Sharpe ratio 3.1
• Sortino ratio 2.7
• Beta (correlation to equity market) 0.07
For more information on funds of hedge funds, please click here