Trowbridge Targets Illiquid HNWs For New Fund

Feb 5 2007 | 4:10pm ET

There’s a new commodity futures fund out there for high net-worth individuals with cash locked into illiquid investments. Grosse Pointe Park, Mich.–based Trowbridge Management has launched the Trowbridge Global Fund, a managed futures fund that invests exclusively in Welton Investment Corp.’s Global Directional Portfolio program, a systematic diversified strategy.

The Global Fund, which launched last September, serves as a diversifier from other illiquid investments made by high net-worth individuals, according to Stan Dickson, president of Trowbridge Management. “There is a need out there for illiquid investors to make investments in the commodities market whereby they could use their illiquid assets as collateral or borrow credit at a 2% interest rate,” he told FINalternatives.

The fund’s most notable feature is a tax efficient funding structure that Dickson says is well-suited to high-net-worth investors with assets that carry burdensome tax consequences if divested.

“Trowbridge can offer referrals to banks capable of issuing letters of credit against assets like real estate, investment portfolios, and company balance sheets, among others. Trowbridge will then accept these letters of credit for fund access into the Global Fund program. Investors have the potential to utilize their otherwise illiquid assets to generate incremental, tax efficient yields.”

The firm will also make loans to investors at an annual 2% interest rate for investments into the new offering.

Dickson said he selected Welton’s GDP program “to have a low correlation to equities and equity-based hedge funds, and has the stability of a multi-manager pool.” 

Welton's global futures program returned 16.4% to investors last year, outpacing the Barclay Group’s Hedge Fund Index (12.35%), Hennessee Group’s Index (11.36%), the Dow Jones Industrials Average (16.29%), and the S&P 500 (13.62%).

GDP trades global futures markets including the currency, commodity, interest rate and stock index sectors. It employs proprietary systematic trading models in three directional trading sub-styles that draw on a variety of statistical, technical and fundamental market data. The program managed some $171 million as of the end of December.

The Trowbridge Global Fund charges fees of 0/20 with a $250,000 minimum investment requirement.

Carmel, Calif.-based Welton provides investment management services for institutions, banks, fund of funds, and family offices and is managing approximately $216 million in total assets.


In Depth

Hedge Funds Take Interest In ‘Soft Deposits’

Nov 19 2014 | 11:56am ET

New York-based Winchester Equities, headed by Avi Benamu and Jack Hazan, funds soft...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.