Monsoon Launches Systematic Asia Pacific Fund

Jul 20 2011 | 1:40pm ET

Bethesda, Md.-based Monsoon Capital has launched a new pan-Asia equity futures CTA strategy, the Monsoon Asia-Pacific Systematic Program.

The fund went live on July 1. A Dublin-domiciled UCITS version of the strategy will launch in September 2011. The two funds currently run a combined $12 million in proprietary capital.

Monsoon founder and CEO Gautam Prakash told FINalternatives the $400 million asset manager has run the strategy for the past eight months in a proprietary trading account.

“Eight months is not a long period to draw any big conclusions,” he said, “but it’s enough to feel confident launching as a fund.”

Prakash says the strategy has delivered attractive returns (17.97% YTD, according to BarclayHedge data) with low correlations and drawdowns. The fund trades index futures across the eight most liquid equity index futures markets in the region (Taiwan, China, Hong Kong, Korea, India, Japan, Australia and Singapore) using a mix of pattern recognition, trend-following and mean-reversion systems. 

Prakash says Monsoon’s systematic approach is unique in Asia, where most funds are fundamental long-short, but he believes it offers the best way to take advantage of the high volatility, strong trends and price inefficiencies that characterize Asia-Pacific markets.

The Asia Pacific fund grew out of Monsoon’s preparations for the launch of its fully systematic India Opportunity Fund. “We discovered that some systems worked quite well across Asia,” says Prakash.

Fees are 1.5% and 20% and minimum investment is $1 million. Prakash says their target investors are CTA funds of funds and broader funds of funds, high net worth individuals and mid-sized family offices.


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

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.