Chicago Fund-of-Funds Opens To Outside Investors

Jan 19 2006 | 7:41pm ET

Chicago-based fund-of-funds firm Centripetal Asset Management is opening up its first fund, which invests in managed futures, to outside investors on Feb. 1. The Centripetal Dynamic Fund, which was launched in October 2005 with partner money, aims to attract conservative investors who are interested in hedge funds but are looking for steady returns.

“Our goal is to return between 10-15%, and that would position us more with the conservative (investors)—the pension funds and the family offices—and not so much with the people who are looking for maximum returns,” said Pat Mulchrone, who co-founded the firm with Scott Thomson.

Previously, Mulchrone spent 10 years serving on the Board of Governors of the Chicago Mercantile Exchange, including four years as the vice-chairman, while Thomson has been active as a member of the Chicago Board of Trade.

The new fund, which currently invests with eight, uncorrelated managers, is adding a ninth to its portfolio in order to lower volatility, which Mulchrone said is already low, with a standard deviation in the 2.5% range.

The ninth hedge fund being added to Centripetal’s basket is a global macro fund run by Jason Dekker of Dekker Capital Management. The fund has posted 20% returns since its September 2004 launch.

“We’ve analyzed [Dekker’s] systems. We think he is an up and coming trader and we have a lot of respect for the way he enters and exits the markets,” said Mulchrone, who added that Dekker is the only emerging manager in the fund’s portfolio.   


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