Scalar Funds Offers SMA Equities, Futures Strategies

Jun 21 2007 | 11:50am ET

Scott Eisner, principal of Scalar Funds Management, recently launched a program to give investors their choice of using traditional S&P 500 equities or single stock futures to create customized portfolios in their personal accounts.

Eisner’s program is offered only in managed account formats and features a market neutral long/short strategy and a pure directional strategy similar to mutual funds. “What I’ve really done is develop a pricing model, which is very formulaic and systematic, and seems to work fairly well as a predictive tool,” said Eisner.

“My favorite use of the model is currently in the equity market neutral space although it works fairly well as a directional strategy, and can be applied using traditional equity or single stock futures. The latter application seems to be getting a lot of interest for various reasons.”

While Eisner admitted that the program is not for everybody, he said investors benefit from its transparency and lack of correlation to hedge fund indices. "There's nothing behind the curtain here, it's all in the sun light every day. Hedge fund indices investors can benefit from it because it has a low to negative correlation to market neutral indices. Futures investors and brokers are also likely to be particularly interested in the use of single stock futures as it opens completely new horizons for managing client portfolios,” he said.

The minimum investment requirement for the program is $250,000. Market neutral investors are charged a fee of 1/20 while directional investors are charged a 2% management fee.

Eisner is chief financial officer of proprietary trading firm Harrison Trading Group, which is not affiliated with the Scalar Funds. In 2003, Eisner was trading principal for the Kottke Long/Short Equity Value Fund, the precursor to his current strategy.

 


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note