Florida-based multi-strategy alternative investment manager, Stonehenge Asset Management, LLC is to launch its third multi-strategy hedge fund, Stonehenge Diversified III, on 1 May 1, 2012. The new fund will be domiciled in the US and has appointed NAV Consulting Inc, as administrator.
Stonehenge Founder, Principal & Chief Investment Officer Steven A Michael (pictured) says that the new fund is an extension of the firm’s Stonehenge Diversified I hedge fund, although Stonehenge Diversified III may accept non Qualified Eligible Person (QEP) investors in the future. As a multi-strategy hedge fund, Stonehenge Diversified III will trade on a short term approach to a statistically volatility breakout on a 24 hour basis.
Michael says the fund would also trade a medium strategy approach using a statistical volatility algorithm along with capital flow data to trade a broad base of commodities.
“We limit our trade horizon to one week,” he says. “These two strategies target a fixed profit and stop loss level. Our third approach is the Forward Curve Realignment Strategy which seeks to capitalise on the reversion to equilibrium of the forward curve following the distortions brought about by the rolling of established positions, primarily by long-index investors and speculators. This strategy goes long and short all markets to minimise market impacts. We allocate to each strategy based on a proprietary volatility allocation system. We trade 25 different markets in the US derivatives. We are shortly adding European and Asian markets.”
According to Michael, the subscription value set by Stonehenge has been reached and will commence trading on 1 May, 2012. Stonehenge Diversified III will be offered continuously moving forward beginning 1 June, 2012. Subscriptions for June will begin on 1 May. The fund will have an extremely large capacity and the manager is looking to achieve its USD250 million target “by years end.”
Stonehenge’s existing clients and relationships provided the seed capital for the fund after the initial offering was announced.
Stonehenge Asset Management manages two other funds, Stonehenge Diversified I and Stonehenge diversified II.
