Hedge Funds

Definition

The basic idea of Fund of Hedge Funds is simple: outsource asset management to a team of experienced fund managers, carefully picked and monitored. By blending this expertise in a portfolio the risks inherent of investing in one fund or investment house are minimised.

Why use a Multimanager fund

There are a number of reasons why investors should consider using multimanager funds. They allow access to a portfolio of underlying managers and funds in a variety of strategies which limits the risk inherent in single strategy or single objective funds.

They provide private investors with access to a wealth of talent that they would otherwise be precluded from as many funds are closed or limited to institutions whilst others typically stipulate high minimum investments. The ability to trade in and out of these funds is possible which is not always the case for individual funds where a fixed term of investment is required and liquidity is not always provided.

Above average returns with lower volatility can be achieved over a long period by choosing managers who are the most capable and the cost of accessing their underlying funds can be greatly reduced using the multi-manager’s purchasing power.

Our Experience

The Edmond de Rothschild Group pioneered the multimanager concept through the launch of Leveraged Capital Holdings in 1969. For forty years the group has been at the forefront of Hedge Fund investing with an unparalleled knowledge of the market and its practitioners. The Group now manage the Capital Holdings and Prifund suite of funds from offices in Geneva, London and New York. This network provides ties to the finest managers and gives access to new talent as it arises.

The funds have successfully weathered many financial storms without imposing liquidity restrictions. The Group manages $10 billion for institutional and private clients through these funds. The importance of controlling and monitoring hedge funds has never been more topical. The Group recognised this at outset and gave full control of all aspects of funds of funds to Banque Privée Edmond de Rothschild in Luxembourg.

Past Performance

As an example we highlight the performance of Prifund Alpha Uncorrelated US$ class below. This fund seeks a positive absolute return with little or no directional link to the stock market. It invests in numerous hedge funds including merger arbitrage, convertible arbitrage, fixed income arbitrage, distressed securities, CTA’s, futures trading, statistical arbitrage and macro players. There are no geographic or sector allocation restrictions. The fund is available in US$, Euro and Sterling classes.

Facts & Figures

The Group manage a number of Fund of Hedge Funds that cover a wide spectrum of investment strategies. These are available across most major currencies and are typically available in minimum size of £10,000. Monthly factsheets and further details are available on request.

We are regulated by the Guernsey Financial Services Commission.