Tuono Corp. To Open Domestic Fund After Six-Month Delay

Sep 22 2006 | 12:00am ET

The Tuono Corp. is slated to open its domestic fund to investors on Monday, following a more than six-month delay caused by legislative red tape and filing requirements. The T-Circle Partners Fund will be a hybrid managed account product that will invest in derivatives, currencies and other aggregated baskets of quantitative-driven investments.

The fund will have a strategy similar to the company’s offshore fund, Tuono Circle Ltd., however it will be layered with a quantitative style to reduce volatility.

“We talked to a number of international banks who looked at the style of our offshore option and said its volatility was about 300 basis points above what they’d like to see,” said Michael Billy, ceo of the Naples, Fla.-based firm.

For the domestic fund, the volatility has been reduced from roughly 8% to 3%. This will alter the return on investment slightly. For instance, the year-to-date return on the “pure Tuono strategy” is 25.85%. The addition of the quantitative strategy limiting the volatility would put the return at 21.86%.

The fund will have two series, labeled Class A and Class B, allowing investors to choose between a mixed strategy of the pure Tuono style with a quanti-
tative overlay or a synthetic in-
vestment style layered with the quantitative style. The overall cap
of the combined funds will be
$2 billion.
 
The fund will be open to ultra-high net worth investors as well as institutions and will carry a $1 million minimum investment and a one-year lock-up period. It will not charge redemption fees but it will have a 2% management fee and a performance fee of up to 35%.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...