Blacksquare Offers Fund Of Funds Focused On Low Volatility

Feb 1 2011 | 5:19am ET

Blacksquare Capital has launched a UCITS III-compliant fund of hedge funds with an obsessive eye toward uncorrelated returns and a set volatility.

The new IFSL Blacksquare Diversified Absolute Return Fund—the firm’s second after last year’s Mult-Manager Absolute Return Fund—is targeting 8% volatility and market-neutral returns. The new vehicle will not invest in any hedge fund with a correlation to high-yield bonds or stocks higher than 0.4 over a three-year period, CEO Christopher Peel told the Financial Times.

It also won’t invest in any funds that its Multi-Manager fund invests in.

“There is no overlapping in our two portfolios,” Peel said, explaining the fact as a function of the funds’ volatility targets.

The Diversified fund will put 70% of its assets in UCITS-compliant hedge funds, with the remaining in liquid securities such as exchange-trading funds, stocks and sovereign debt. All of the funds it will invest in offer daily liquidity.

Blacksquare said the new fund will not charge performance fees, but will have an load fee of up to 5%. It charges 1.5% for management.


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...

Lifestyle

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.