SGAM Alternative Investments is launching the first UCITS III compliant mutual fund under French law that targets a risk/return profile corresponding to the global hedge fund universe.
The firm’s new Total Return Exposure (T-Rex) strategy aims to replicate the performance of the Hedge Funds Research Index, with a dynamically managed portfolio using liquid financial instruments, such as futures, on the major asset classes (equities, bonds, and currencies).
The allocation process of the fund is based on a quantitative model, which automatically calculates the allocation offering a high correlation to the performance of over 2000 hedge funds tracked in the HFR database, without subjective input from a fund manager. Its positions are re-weighted every month.
The T-Rex strategy charges no minimum subscriptions and offers daily liquidity and transparency, as the fund’s portfolio allocation will be published continuously on the firm’s Web sites.