Horizon Launches Cash Account For Emerging Managers

Jun 13 2013 | 10:38am ET

Chicago-based Horizon Cash Management has launched a product providing small and emerging fund managers with a safe alternative for cash balances in excess of margin requirements.

The Emerging Manager Fund Cash Account requires just $1 million for cash balances in excess of margin requirements, in contrast to the typical separate institutional cash management account requirement of $10 million or more.

Horizon recognized that emerging managers--including hedge funds--and other small funds need cash management outside of their Futures Commission Merchant accounts after witnessing what occurred during the recent implosions of MF Global and Peregrine Financial Group—excess cash left in those FCM accounts was held up in bankruptcy.

Diane Mix Birnberg, Horizon founder and chairman, said in a statement: “We saw that emerging managers need solutions for protecting customers assets, and we responded with a product idea whose time has come. Horizon is happy to assist new and smaller managed futures funds with a cash management account specifically created for these emerging managers and their investors.”

Horizon said the benefits of the new account include safety—cash balances cannot be encumbered in the account; liquidity—cash is available to meet margin and other cash needs; and income—Horizon provides active cash management.
 
Founded in 1991, Horizon Cash Management has approximately $2 billion in assets under management.


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