Frankfurt-based Prime Capital AG has posted its strongest performance in the absolute return segment since 2009, with its fund of hedge funds strategies delivering substantial gains independent of equity and credit market fluctuations.
The asset manager, which specialises in uncorrelated investment strategies, saw robust investor interest in 2024, expanding its absolute return assets under management (AUM) to over $1.5bn.
Prime Capital’s flagship fund, PCAM Blue Chip Ltd, which focuses on large hedge funds generating alpha through scale, delivered a net return of +13.2% (USD share class) in 2024 with low volatility of 2.4% and an equity beta of 0.0. This marks its best performance since 2009.
Meanwhile, PCAM Select, a complementary fund targeting niche specialist hedge funds, returned +7.4% net in USD with 1.3% volatility and an equity beta of 0.0, further reinforcing Prime Capital’s ability to generate returns uncorrelated to broader markets.
“We thank our clients and investors for their trust in us,” said Tilo Wendorff, Head of Absolute Return in a press statement. “We remain committed to delivering strong, uncorrelated returns through our disciplined investment process. Finding and accessing the best hedge fund managers remains our top priority.”
PCAM Blue Chip’s gains were fuelled by nearly all individual managers delivering double-digit returns, with the strongest performance recorded in the first and last quarters of 2024.
Prime Capital reported strong investor interest in 2024, particularly from family offices and pension funds seeking low-beta hedge fund exposure. Assets in its absolute return strategies increased from $1.2bn to over $1.5bn, reflecting sustained demand for alternative investments in an environment where equity markets remain highly valued.
“We expect 2025 to be another strong year, with continued appetite for uncorrelated strategies,” Kalusche added. “Our portfolio remains well-positioned, benefiting from diversified alpha sources and agile risk management.”
