GLOBAL - London-headquartered Platinum Capital Management has launched the Platinum All Weather Fund.
The new offering aims to generate very low volatility, consistent absolute returns. The target return is 10-14% per annum.
The portfolio is invested in broad-based equity index baskets,long and short, with an options overlay to hedge and enhance returns.
The strategy takes advantage of mispriced options and option volatility, and then supplements this by directional movement of the underlying index baskets. This fund style is attractive to investors as it maximises focus on proactive risk management, consistent monthly performance and superior liquidity, with no individual stock risk, said Platinum.
Craig Reeves, managing director of Platinum Capital Management, said: “This is a compelling investment at any time but particularly in today’s high volatility environment where the volatility of the S&P500 is at uniquely high levels.”
Reeves highlighted how between January 1995 to December 2002 volatility of the S&P500 was 16.70%, compared to the volatility of the managed account underlying the Platinum All Weather which was 3.12%. He also cited an average annual return of 17.3%.
The fund was launched at the beginning of April and is available, internationally, to qualified investors.
Minimum direct investment is US$100,000 (E100,000) or, for smaller investments, US$25,000 (€25,000) via the Platinum Wealth Management bond or nominee.
The fund’s maximum investment capacity is US$100m.
Platinum Capital Management develops and distributes structured products on funds of hedge funds, offers private wealth management services and acts as an international partner for US hedge fund managers.
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