Saturday, 20 December 2014
Last updated 16 hours ago
Oct 14 2008 | 1:39am ET
During times of uncertainty and high volatility, one Boston-based hedge fund is trying to live up to its name with a new offering designed to capture higher returns than government or blue-chip corporate bonds while, at the same time having less volatility than equity funds.
Minuteman Capital Management has launched its Minuteman Income Fund, which writes out-of-the-money put options on undervalued stocks to generate profits.
When the fund does exercise its options, it purchases the underlying stocks at bargain prices and realizes significant gains as the stocks return to fair value, according to fund documents.
The fund is targeting 11% annual returns with half the volatility of the Standard & Poor’s 500 Index.
Earlier this year the rookie hedge fund shop launched its eponymous long/short offering investing in a diversified portfolio of those undervalued stocks. However, the fund has met the same fate as many of its brethren, dropping 7% through September.
Minuteman Capital was founded by Calvin Wilder, a former equity analyst at hedge fund Media Group Investments. Wilder also founded Thrive Networks, an IT outsourcing company, and sold it to Staples.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.