London Firm Readies Multi-Strat Hedge Fund

May 28 2010 | 8:07am ET

A former London-based prop trading firm is branching out into the world of asset management with a new a multi-strategy fund.

Alternative Asset Management Ltd (A2ML) on June 1 is launching the Megalio Fund, which will offer investors a medley of strategies to satiate their risk appetites.  The fund is comprised of six subfunds including a macro fund, two currency funds, a long-term global equity fund, and a short-term, single-market (DAX) currency fund.

Nicholas Edwards, the firm’s chief executive, said he sees continued volatility in global currency markets as governments try to issue new bonds to re-finance and repay debt as it falls due. Edwards added that the continued above average volatility in global equity markets is an ideal environment for short term trend following traders. 

“Long/short funds will outperform a generally stagnant equity market outlook. Overall, as long as we don't return to low volatility trending markets, the trading funds should continue to outperform. This is why our new Megalio Fund range is focused on vol trading, currency trading and equity markets trading as oppose to core 'buy and hold' strategies,” Edwards told FINalternatives.

The firm was founded some five years ago as a prop trading firm and has just recently begun to market funds to outside investors. The Megalio Fund is a rebranding of an existing Cayman Islands-based master feeder structure dubbed the Alternative Vision Fund, which launched in 2007 but remained dormant for a few years. The stock market crash of 2008 spurred the firm to abandon its prop trading business for partnerships with other firms such as Cazenova Capital Management to manage and distribute funds to investors.

In addition to its new volatility fund, the firm also manages a range of UK and European equity absolute return funds in a partnership called the Cazenova Funds. Edwards said A2ML is currently mulling a UK commercial real estate Islamic compliant fund to be launched within the next few months.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

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.