Chicago Firm Offers Hedge-Like Mutual Fund

Jul 23 2009 | 2:25am ET

Chicago-based Driehaus Capital Management has launched an absolute return mutual fund designed to take advantage of a broad range of opportunities in the credit markets.

Driehaus said the Driehaus Active Income Fund is unlike recent spate of “hedge-like” mutual funds in that it already boasts a three-year track record and has received a 5-star Morningstar rating.  Assets in the fund currently exceed $800 million. The fund invests primarily in U.S. fixed income and floating rate securities, of both investment and non-investment-grade credit quality, by employing in a variety of short-term trading strategies.

According to K.C. Nelson, portfolio manager of the new fund, the fund pursues relative value and outright long and short investment opportunities across a variety of credit instruments and is looking to trump returns of long only core bond allocations, with equal or less volatility.

“The credit markets currently offer some extraordinary investment options,” he said.  “However, this ‘cheapness’ exists in only certain segments of the market, and these segments are constantly changing. A static, long-only core approach with no hedging mechanism can fail to take advantage of these changes. This fund gives investors exposure to the credit markets in a relative value format, while hedging away virtually all of their interest rate risk.”


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

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.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.