Money managers under the microscope
In English, that essentially means funds that don’t go down much when the market falls (we don’t seem to mind if a fund matches the market during a bull market).
On Monday 47 Degrees North, a firm backed by the Guinness family’s (of brewing fame) investment office, said it had launched a fund investing in electricity markerts, Middle Eastern and North African equities, insurance-linked securities and volatility arbitrage which is designed to have low correlation to equity markets.
And today Kiwi quant firm Pure Capital said it’s launching a fund investing in liquid derivatives with the aim of protecting portfolios in equity bear markets while benefiting during bull markets.
Pure says it has run a similar structure via a managed account structure since 2007, with returns of 79 percent last year and 21 percent year-to-date.