Doherty Advisors is set to offer investors interested in both its flagship and its new tail-risk fund a one-stop shop.
The New York-based volatility arbitrage firm is set to launch a new managed account program combining the two funds at the beginning of next month, HFMWeek reports. KBD Relative Value Plus will be available in both an onshore and offshore version and is expected to debut with $45 million from family offices and funds of hedge funds.
Those investors will get a piece of both Doherty's gamma-neutral KBD Relative Value Volatility Strategy and its long-gamma Grey Swan Equity Hedge Strategy, which launched last year. The latter fund invests in long put and put spreads on Standard & Poor's 500 Index options. The firm's flagship is up 0.6% this year through May.
The new managed account platform, which has a $1.5 billion capacity, will offer monthly liquidity with no lockup. It will charge 2% for management and 20% for performance with a $1 million minimum investment requirement. Barclays Capital and Newedge will serve as prime brokers.
Doherty has $414 million in total assets, including $338 million in its flagship.