Shield Plus Pushes Alternative Energy & Inflation Fund

Apr 19 2007 | 12:31pm ET

Shield Plus, a Minneapolis-based CTA and CPO, is revving up its marketing effort for its three-year old energy and inflation hedge fund.Shield Plus 90-Alternative Energy & Inflation Fund, a market-neutral vehicle investing in the alternative energy and inflation-related markets with some $5.5 million in assets.

Jim MahnkeJim MahnkeAccording to Shield founder Jim Mahnke, the fund is a net-long volatility play on options, concentrated primarily in the energy complex such as crude oil, natural gas, ethanol and other renewable energy sources including gold and corn. It employs a bottom up market-neutral investment process in an attempt to capitalize on a net change in volatility, and does not seek to anticipate market direction.

Given the fund’s three-year record, Mahnke believes it is time to test the institutional marketplace and will start with the introducing broker and consultant crowd. The fund, which began trading in January 2004, was up 143.34% that year and returned 82.24% the following year. However, the fund came fell back to earth last year, returning just 2.02% in a year of declining energy prices and volatility by industry observers.

“We actually believe that last year, on a relative basis, was our best year, primarily because we’re a net-long volatility manager,” said Mahnke. “Given that market initiative, the worst-case scenario for us is if implied volatility comes down, which means long option values decreases. We actually had a positive return for our clients and they’re exceedingly happy.”

The fund charges a 2% management and 20% performance fee, with a minimum investment requirement of $50,000. 

Mahnke, a former senior vice president at ING/ReliaStar Corp., founded Shield Plus in 2001.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

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

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.