“The Fund targets a return of 15% plus per year.”
Overview
HedgeMix Sharpe (the “Fund”) is an actively managed fund of hedge funds. Our investment strategy is unique in the way that we offer investors access to hedge funds with some of the strongest track‐records available.
We use leading hedge fund databases to source these hedge funds and conduct extensive due diligence on all hedge funds prior to investing. Our team is comprised of academics with high quantitative skills, and prior experience of evaluating quantitative data in financial and macroeconomic matters.
Objective
HedgeMix Sharpe LP offers investors access to a curated portfolio of hedge funds with reduced barriers to entry and increased diversification compared to traditional hedge fund investing. The Fund aims to increase risk‐adjusted return through diversification.’
Strategy summary
As a fund of hedge funds, we target unique hedge funds on a cross‐sector, cross‐strategy, cross‐regional basis, in order to build a portfolio of hedge funds that are successful in their very own way, while at the same time being weakly interlinked with each other. We look at market neutral hedge fund strategies related to systematic trading, long/short equities, longevity‐based assets and high-yield bonds. By combining a selection of weakly interlinked, high‐performing hedge funds with low beta, our fund targets a high risk‐adjusted return and market neutrality.
Target return
The Fund targets a return of 15% plus per year.
Investments
The fund is a Fund of Hedge Funds and shall invest a majority of the Fund assets in collective investment schemes (“Investment Funds”) that meet the following conditions: an annualized Sharpe Ratio above 1.0 (one point zero) on a 24-month rolling basis.
The geographical focus of the fund is global but the Fund constituents shall be located in regions with sufficient AML/CFT framework and oversight. Investment Funds may be in the form of any recognized investment vehicle, such as limited partnerships, unit trusts, segregated managed accounts and companies limited by shares.
The Fund may have exposure to less risky and riskier asset classes including but not limited to bonds, credit, other financing such as operating leases and factoring, equities, distressed debt, insurance-linked securities and derivatives.
Investments shall be subordinate to the objective of the Fund, which is to provide its Shareholders with the highest possible return in relation to the risk, where risk is measured as standard deviation of portfolio return.
Risk profile
The Fund Manager aim to maintain a relatively low risk level with a yearly standard deviation within the range of 4 to 10% measured on a rolling 24-month basis of the monthly return. The risk level may be above or below the threshold, especially during extraordinary market conditions and events.
The risk associated with investing in the Fund is primarily affected by the distribution of the fund’s assets between the asset classes with low and high risk respectively. The risk associated with investing in funds that invest in bonds and other interest-bearing securities is normally lower and is affected by the duration of the fund’s holdings. Longer duration leads to higher risk and increased sensitivity to changes in market rates. Changes in the debtor’s creditworthiness affect the risk.
The risk associated with investing in funds that invest in more alternative asset classes and investment strategies is primarily affected by the skill of individual managers in the implementation of their investment strategies and not necessarily by general market ups or downs. Investments in funds that invest in more alternative asset classes are generally also exposed to liquidity risk to a greater extent than funds investing in traditional asset classes.
Investment process
The investment process is composed of two keystones; qualitative‐ and quantitative analysis. Our qualitative analysis includes due diligence on the management team, and evaluating the investment strategy from multiple angles. We look at strategy success factors, protective measures, and strategy risk factors such as profit source, trend reliance, concentration risk and currency exposures. We conduct quantitative analysis for portfolio optimization, including constructions of the Efficient Frontier.
Investor profile
The Fund target investors with an investment horizon of 1‐5 years and who strives for a relatively low risk. Time horizon for investments in the Fund is recommended to be at least 1 year.
Fund performance and historical returns
As the Fund was launched in 2020, there is no relevant performance data yet.
Jacques Georget
Jacques holds a MSc in Economics from Uppsala University and a double BSc’s in Economics and Finance from the University of Gothenburg. He has gained valuable experience at the World Bank as an intern in the Economics Division and has been involved in international trade and business for many years.
Rajat Chawla
Rajat is a certified accountant and holds a Masters Degree in Accounting. He joined HedgeMix in 2019.
| Fund | ISIN Code | Price per Fund Share (US$) |
|---|---|---|
| HedgeMix Sharpe LP | NZHSHE0014S0 | 100 |
