Sunday, 7 February 2016
Last updated 2 days ago
Apr 2 2012 | 9:03am ET
Delray Beach, Fla.-based Stonehenge Asset Management launched its third multi-strategy fund on April Fool’s Day, but it’s for real.
The $500 million Stonehenge Diversified III fund was launched with seed capital from the firm’s existing clients and relationships. The U.S.-domiciled vehicle is administered by NAV Consulting.
Stonehenge founder and chief investment officer Steven Michael said in a statement that the new fund is n extension of the firm’s Stonehenge Diversified 1 fund, although the new vehicle may in futures accept non-qualified eligible person investors in futures.
Stonehenge Diversified III will trade on a short-term approach to a statistical volatility breakout on a 24-hour basis. Michael said the fund would also trade in medium strategy approach using a statistical volatility algorithm along with capital flow data to trade a
broad base of commodities.
Said Michael, "We limit our trade horizon to one week. These two strategies target a fixed-profit and stop-loss level. Our third approach is the forward curve realignment strategy which seeks to capitalize on the reversion to equilibrium of the forward curve following the distortions brought about by the rolling of established positions, primarily by long-index investors and speculators. This strategy goes long and short all markets to minimize market impacts. We allocate to each strategy based on a proprietary volatility allocation system. We trade 25 different markets in the U.S. derivatives. We are shortly adding European and Asian markets."
Michael says the subscription value set by Stonehenge has been reached. The Stonehenge Diversified III will be offered continuously as of May 1, 2012. The manager is looking to achieve its $500 million target "soon."
Stonehenge Diversified I, which began trading in February 2011, ended the year up 1.66%. Stonehenge Diversified II, launched in October last year, is up 1.24% over the past four months.
Founded in 2009, Stonehenge Asset Management focuses on the global futures and forex markets.