Collateral Launches Absolute Return Strategy, Readies Multi-Strat Vehicle

Dec 15 2006 | 12:05pm ET

Cleveland-based Collateral Investment Management has launched its Absolute Return Portal strategy, which trades currencies and exchange-traded funds, and the Equity Market Advisor strategy, which aims to exceed the return of the S&P500 index over an investment cycle.

“The Absolute Return Portal strategy trades currencies as an overlay on a cash management type product,” said co-founder Patrick Kennedy. “It buys highly liquid ETFs and shorts their futures contacts then overlays that with currencies.” The strategy charges management fees of 80 basis points and a 15% incentive fee upon exceeding the 3-month Treasury bill.

The Equity Market Advisor strategy is a mechanical trading system that buys and sells S&P500 futures contracts. It charges a 1% management fee and a 20% performance fee with a $200,000 minimum investment requirement.

In addition, the firm is planning to launch a multi-strategy product that would encompass the currency, equity and energy markets. “We’re looking to add low-correlation asset classes to the multi-strategy mix,” said co-founder David Cooley.

The strategy, which the partners have been trading internally with their own capital, will charge 2% for management and 20% for performance, with a $200,000 minimum investment requirement.

Prior to co-founding the firm, Cooley was a managing director and partner at J&W Seligman, where he managed global equity funds and chaired the industrial sector team. Kennedy has also been a director of institutional distribution for National City Investment Management. 


In Depth

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

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

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

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.