TFS Capital has launched the TFS Hedged Futures Fund (TFSHX), which will compete for business with mutual funds that invest in managed futures.
Similar to the firm’s flagship mutual fund, TFS Market Neutral (TFSMX), TFS Hedged Futures will hold a basket of long and short positions. TFSHX will invest in futures contracts long that are believed to be undervalued and also hold a separate basket of futures contracts short that are believed to be overvalued. The Portfolio Management team will employ quantitative models in an attempt to take advantage of short term inefficiencies in the markets.
Although the Fund will compete against other managed futures funds, TFS believes it will be unique from the other offerings in this group.
Eric Newman, one of the fund’s portfolio managers, says: “The fund’s strategy will allow it to pick futures contracts for the portfolio not based on momentum or trend following. Therefore, the expected correlation between TFSHX and futures indices, equity indices, as well as other managed futures mutual funds is expected to be very low."
The fund is expected to be available for purchase wherever current TFS offerings are available. TFS will try to make it available as soon as possible but is dependent on brokers to make it available.