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

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note