HedgeMix Sharpe

Target return

The Fund targets an annual return above 10%.

Investments

The Fund is a Fund of Hedge Funds and shall hold a majority of the Fund assets in collective investment schemes (“Investment Funds”) and separately managed accounts (each an “SMA”) that meet the following conditions: an annualized Sharpe Ratio above 0.5 (zero point five) on a 24-month rolling basis, calculated using the 3-Month U.S. Treasury Bill secondary market rate as the risk-free rate. If an Investment Fund or SMA investment strategy where to fall below such threshold, the Fund Manager shall be given reasonable time to remove its exposure, taking into account the terms under which the investments were made.

The geographical focus of the Fund is global. Investment Funds may be in the form of any recognized investment vehicle, including without limitation, any limited partnership, unit trust or company limited by shares. The Fund may have exposure to less risky and riskier asset classes, including without limitation, any bonds, convertibles, credits and other types of financing such as operating leases and factoring, equities, commodities, currencies, crypto-currencies, insurance-linked securities, distressed debt and derivatives.

Investments shall be subordinate to the objective of the Fund, which is to provide its Unitholders with the highest possible return in relation to the risk, where risk is measured as standard deviation of portfolio return.

Risk profile

The Fund 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 exposure of Fund towards asset classes with low and high risk respectively. The risk associated with investing in bonds and other interest-bearing securities is normally lower and is affected by the duration of the 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 exposure to 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 more alternative asset classes are generally also exposed to liquidity risk to a greater extent than investments in traditional asset classes.

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.