Global Vision Sets Off Dynamite F3 Fund

Apr 18 2007 | 10:29am ET

If investing in funds of funds is your cup of tea, one new firm would like to interest you in a fund of funds of hedge funds. Global Vision Investments, a Cayman Islands-based investment advisor, is betting that investors who just can't seem to get enough diversification in their portfolios would gravitate toward its first hedge offering, dubbed Dynamite F3. The vehicle, which was originally set to launch in February, is finally getting off the ground on May 1 with some $30 million in initial equity.

Jürg BühlerDynamite F3 will invest in a globally diversified portfolio of 12 to 15 funds of funds, as well as five to eight single-strategy funds, according to Global Vision's co-founder and portfolio manager . While the new offering has a diversified mandate, it is wary of option-selling strategies, specifically Standard & Poor’s 500 option sellers, and will not allocate capital to the sub-strategy. "I think this is quite a dangerous strategy and we have seen this during in February and March," said Bühler.

"We're also looking to not be overly exposed to long/short equity because I think we might see corrections in the stock market later this year, and long/short equity and option sellers might get hit by such events."

According to Bühler, while some investors have been lukewarm to the idea of paying additional fees for diversification, others have shown interest. "Obviously, there are people who question funds of funds, but the ones who have seen our presentation have been quite interested in it," he said.

"Many people ask us about the additional layer of fees,” Bühler notes. “We have two answers to that: First I think one should look what he gets after fees, and our product looks quite appealing with a target annual return of 20% with a volatility similar to bond investments. Secondly, we are able to make it even more attractive by negotiating better fee terms with the target funds and rebating it to the fund and so to the investors. This will offset the biggest portion of the fees charged by ourselves."

Those fees are 1% for management and 10% for performance, with a US$100,000 minimum investment requirement.

While Buhler and his partner, Steven Butlin, are currently busy marketing their F3 product, the pair is also contemplating launching a CTA fund of funds sometime down the road. "There aren't too many good products out there within this area because CTAs have not done so well lately, but we still think investing in CTAs have advantages because during the Asian crisis and the LTCM crash they were the only strategies to make profits, and there is definitely some talent there as well," said Bühler.


Fund of Fund of Funds, Oh My!

In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...


Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...


Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…


Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

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.