Geronimo Financial, which provides absolute return strategies in a daily, liquid, mutual-fund format, is betting that Japanese retail investors would take the plunge into hedge funds. The firm has teamed up SBI Asset Management, a Japanese financial services firm, to offer two Geronimo funds to Japanese investors.
SBI has launched the SBI Absolute Return Fund, which will allocate exclusively to the Geronimo Multi-Strategy Offshore Fund, which has exposure to long/short, event-driven, distressed-debt, market-neutral, arbitrage and macro strategies, and the Geronimo Sector Opportunity Offshore Fund, which provides long/short exposure to global sectors, styles and asset classes.
The SBI Absolute Return Fund is listed in Japan as a daily liquid investment trust, and is being marketed only to Japanese investors through SBI Asset Management's broker/dealer subsidiaries and other Japanese brokerage firms including, SBI E*Trade Securities and SBI Securities. The minimum investment in the fund is ¥100,000 (US$830).
The fund is seeking positive annual returns with low correlation to the Nikkei stock index and Japanese bond market. "The demand for convenient absolute return vehicles is a global phenomenon and we are proud to work with SBI to provide this much-needed solution to Japanese investors," stated David Prokupek, Geronimo’s founder.
In other firm news, Geronimo is contemplating launching a managed futures fund in a mutual fund format later this year, according to its spokesman. The futures fund would provide daily liquidity and NAVs.
Geronimo Financial was founded in 2002 and is currently advising on more than $450 million in assets. SBI is an investment trust management & investment advisory services firm and is considered one of the core companies of the SBI Group's asset management business in Japan.