Calif. Firm Preps Alt. Energy Hedge Fund

Jan 3 2008 | 10:06am ET

Tarzana, Calif.-based Martin Asset Management is ushering in the New Year with a pair of launches.

Next month, the firm will launch its Ilios Alternative Energy Fund, a long-biased vehicle, with between $10 million to $15 million in assets. The firm will also serve as a sub-advisor to an exchange-traded fund strategy to be rolled out at the end of March.

Ilios will invest in a range of public companies involved in wind, solar, hydro, geothermal and biomass energy, and will hedge certain exposures using inversely correlated ETFs.

“We don’t use leverage, derivatives or futures because they’re added risks to the portfolio,” said Francisco Martin, founder. “We use a lot of PowerShares [ETFs] to get downside protection when we deem it necessary.”

Martin said the fund is investing in companies such as First Solar, a product manufacturer for solar power plants, because of the performance of its stock and the fact that it “probably has the best track record of all the solar energy companies out there.”

He also said that investors are looking to invest in more alternative energy funds as oil prices top the $100 mark. “We’re seeing $115 to $120 per barrel, which will make alternative energy more feasible.”

The fund charges a 2% management fee and a 20% incentive fee with a $500,000 minimum investment requirement

Martin is also sub-advising an ETF-specific strategy dubbed the Integris Global Index Plus Fund, which is slated to launch on March 31 with some $10 million in proprietary capital. Martin said the fund is mostly replicating the performance and risk performance of the HFRI Index by going long and shorting certain ETFs. Thirty percent of the fund will be a global, macro opportunistic strategy that will “add alpha to the beta.” 

The Integris fund charges a 1% management fee and a 15% performance fee.

Prior to starting Martin Asset Management in February 2007, Francisco was a co-founder at MAM Wealth Management in Los Angeles. The firm currently manages $124 million in separately managed accounts.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.