R.G. Niederhoffer Capital Management Launches Inflation Protection Hedge Fund

Sep 22 2011 | 10:27am ET

Roy Niederhoffer, whose flagship Diversified Program returned 9.5% this past August (the industry’s worst month in three years), has launched a new fund designed to protect investors against inflation.

The R.G. Niederhoffer Inflation Protection Program, which started operations in August and gained 4.5% in its first month of trading, combines short-term long-side trading in commodities and short-side trading in fixed income with bi-directional trading in equities and foreign exchange, according to a source close to the fund.

The new vehicle—iHedge—will be long commodities and short fixed income at the end of each trading day to protect against inflation expressed as rising commodity prices or rising interest rates.

The core driver of the fund is the same as that of R.G. Neiderhoffer Capital Management’s 18-year-old Diversified Program, which uses a short-term, quantitative (primarily although not exclusively) contrarian approach to trade multiple asset classes. The fund will hold positions for an average of one to three days, with certain positions—long commodities and short fixed income—held for up to a few weeks, and will offer monthly liquidity. An offshore version will begin trading in September.

The minimum investment in the new fund is $1 million, fees are the standard 2% and 20%, and the firm is reported to be looking at raising $500 million.

“This is something new,” the source told FINalternatives, “We don’t think that there’s anyone combining short-term trading as a positive expectation generator with the directionality of a long commodity or a macro fund.”

Neiderhoffer’s flagship diversified program manages roughly $379 million, while overall his eponymous firm has $445 million in assets under management.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note