Cogo Wolf Launches Highly-Liquid Fund Of Hedge Funds

Jun 22 2009 | 10:01am ET

Alternative investment firm Cogo Wolf Asset Management has launched a fund of hedge funds, the Cogo Wolf Trimaran Liquidity Fund.

The new vehicle is being managed by co-chief investment officers and managing partners Christopher Wolf and Giles Conway-Gordon. According to the San Francisco-based firm, the highly-liquid fund offers complete transparency and targets 16-18% net return with expected volatility of 6-8% without the use of leverage.

“The global financial markets are forever changed. The industry has experienced a kind of ‘perfect storm’ in recent years—the credit contraction, the housing contraction and the overall economic contraction,” Wolf said. “Trimaran is the first fund of its kind, designed as a remedy for sophisticated institutional and private investors who are ready to redeploy capital but need new assurances to do so.”

According to the firm, the Trimaran Fund has been designed to provide Alpha with non-correlation and liability protection including:  Ultra Liquidity (monthly liquidity, 10-day notice with no lock-up, no gate, no redemption penalties and complete transparency); Flexibility (all underlying investments are ultra liquid, permitting rapid, opportunistic responses to global volatility and market uncertainty); and Stability (diversification).

The “three distinct hulls” the Trimaran Fund invests in include managed futures, global macro, CTAs and other ultra liquid strategies which have low/negative correlation to equity markets; ETFs enabling narrow and controlled directionality as a proxy for direct hedge fund investing; And debt-related instruments, notably mispriced credit opportunities offering attractive returns and gains. 

“A forward-looking, global tactical asset allocation model will be necessary for investors to deliver profit in the new fund of hedge funds paradigm,” Conway-Gordon said. “Our top-down investment methodology, namely skating to where the puck is going to be, is paramount to nimbleness and adaptability.  We are asset allocators first, talent scouts second.”

“It’s not enough to know what instruments one finds compelling; what’s mandatory is to know why you’re there in the first place.  What macroeconomic trend does that investment capture? And if so, how effectively and what risks are associated with that decision?  Risk management is more than optimization modeling, VAR and stress testing.  It’s a holistic understanding of the environment in which these instruments are being used, the opportunity they’re designed to capture and the finesse necessary to know depth and duration – how long and how much does one hold?  That’s the art and a talent we’ve honed over 25+ years,” Wolf said.

In Cogo Wolf’s 14-year history, the firm, led by president and partner Rachel S.L. Minard, has never invested in a “blow up” manager nor lost a client in its history, and it has retained the same investment team since its inception. 


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