Liquid Alternatives/Hedge Funds: New OYSTER Stable Return SICAV Fund Replicates Hedge Fund Returns
Competitive fees, daily liquidity, and transparency for European investors.
The OYSTER Stable Return SICAV fund will provide investors with an all-weather strategy focused on delivering stable hedge fund returns to institutional and retail investors. Its key features are competitive fees, daily liquidity, and transparency.
The fund aims to use liquid exchange trade products to replicate the portfolios of leading hedge funds. At an annual management fee of only 0.8%, the fund will use a proprietary replication process. (INVESTMENT WEEK)
iM Global Partner has launched the fund under its OYSTER umbrella. It has engaged Dynamic Beta Investments LLP (DBi) to manage the UCITS compliant fund targeted at European investors.
Asset management CIO at iM Global Philippe Uzan said “DBi is perhaps the only liquid alternative firm to have consistently outperformed hedge funds over time by pioneering the concept of fee disintermediation and alpha generation”.
DBi co-founders Andrew Beer and Mathias Mamou-Mani will therefore manage the OYSTER Stable Return SICAV fund.
“For more than a decade, Mathias and I have been singularly focused on how to outperform leading hedge funds with less downside risk, equitable fees, and daily liquidity,” said Beer. “We believe that hedge fund investors deserve more alpha and we are fortunate to have partners who share our vision.”
The OYSTER Stable Return SICAV fund will use DBi’s Equity Hedge Low Volatility and DBi’s Managed Futures strategy in combination for replication.
As of November 2020, DBi’s Equity Hedge composite has outperformed the HFRX Equity Hedge index by 5% per annum net of fees since inception. Meanwhile, the DBi Managed Futures strategy has outperformed the SG CTA index at an annual rate of 4.7% net of fees since inception.
The fund will also assume active positions in only highly liquid futures contracts. It will employ a risk mitigation overlay to enable the fund to target long-term volatility of 5%.
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