Tuono Readies Synthetic Absolute Return Fund

Nov 15 2006 | 3:35pm ET

Asset management firm Tuono Corporation is targeting Dec. 1 for the launch of its latest fund, the Tuono Multi-Series LLC Fund, which is aimed at institutional investors.

The new offering is a synthetic absolute-return fund, seeking to generate portable alpha through the customizable blending of complementary, non-correlated styles.

Michael Billy, CEO of the Naples, Fla.-based firm, said, “We are combining our core strategy with a quant component, which lowers volatility.”  He added that the volatility of the core strategy is 10%, and when mixed with the quantitative strategy, that figure is cut in half.

The two share classes that are being offered are the Tuono Multi-Strategy Absolute Return Series and the Tuono Multi-Asset Alpha Series.

The Absolute Return Series is a systematic options-arbitrage strategy focused on short- to medium-term gains versus long-term directional profits. The Alpha Series is a short-term, global macro strategy that trades financial futures, foreign currencies, individual equities and commodities. According to Billy, it capitalizes on market volatility, with a primary emphasis on directional returns.

The minimum investment in the new vehicle is $1 million. Management fees range from 1.5% to 2%, with performance fees in the range of 20% to 25%. There is a one-year lockup and redemptions are quarterly.

Man Financial and Goldman Sachs are serving as prime brokers and Spicer Jeffries and ATC Fund Services are handling the auditing and administrative functions, respectively. Edwards Angell Palmer & Dodge is serving as legal counsel.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...