Alternative Asset Management has launched A2M Lion Fund, a multi-strategy fund providing diversification through combining the non-correlated strengths of both the foreign exchange and equity futures markets. Underlying managed accounts have combined assets of over $170m.
The company seeks initial investors of up $40m to launch the new fund, however, managed accounts will be offered. The company said that there will be no capacity constraint up to circa $1.5 billion within the structure. The Lion Fund managers do not seek to minimize risk, but reduce risk to an acceptable level to achieve the desired returns.
Nicholas Edwards, CEO of Alternative Asset Management, said: “For some time it has become clear that investors wish to reduce risk whilst maintaining exposure to superior returns through investing in the non-correlated returns offered through systematic managed futures programmes, benefiting from the positive convexity they add to a portfolio.
“With the fund’s historic StdDev at only 2.35% we have assessed the risks of 2.5 x leverage on net investment capital versus the rewards enjoyed. By protecting 100% of investment capital through our innovative structures we believe we can generate significant double digit returns with piece of mind to our investors.”
