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

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of