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.