Wednesday, 23 July 2014
Last updated 6 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…