Atlantic House launches 'diversifier of diversifiers' fund
Uncorrelated Strategies Fund
Tom Boyle, lead manager of the new Atlantic House Uncorrelated Strategies Fund
Atlantic House Investments has launched a new multi-asset derivatives fund aiming to be “a diversifier of diversifiers,” Investment Week can reveal.
Speaking to Investment Week, lead manager of the new Atlantic House Uncorrelated Strategies fund Tom Boyle said the fund would primarily be using a long volatility strategy as a hedge against extreme market moves, while also using diversifier strategies to generate positive returns in normal market conditions.
Boyle said that the fund was created in response to strong client demand and had been running on paper for over a year. He said that alternative managers "feel that this adds something different that they do not have elsewhere, and really adds to their portfolio".
He highlighted that while traditional alternatives such as property, private equity and infrastructure were quite correlated, the new fund held almost no correlation with other alternatives.
He added that the launch came at an especially good time, as "you have got different sorts of movements in the market than you had previously," leaving an uncorrelated fund which he suggested is favourable to high volatility well placed to benefit from recent market swings.
Looking at the suite of funds within Atlantic House's offering, Boyle said the new Uncorrelated Strategies fund worked well with their other products.
"You have Defined Returns, which definitely sits the equity bucket of a client's allocation, you have Total Return, which acts a little bit like a fixed income instrument, and this [Uncorrelated Strategies] definitely sits in the alternative sort of hedge fund bracket, that would otherwise be lost."
"So, what we are trying to do is be able to offer something to all of our clients that could fit in one of their buckets, whether that be equity, whether that be fixed income or capital patient return, and then alternatives."
The fund will have an ongoing charges figure of 0.95% and a performance fee of 20% annually of any returns the net asset value per share achieves above the overnight Federal Funds rate plus a spread of 4%.
"I am particularly excited that a larger group of investors will have access to volatility as an asset class, which has historically only been accessible by large institutions," Boyle added.
Tom May, Atlantic House CIO, said: "Atlantic House Uncorrelated Strategies fund is a natural extension to our fund range. While the fund is new, many of the strategies are already tried and tested by our investment team either within the Atlantic House Total Return fund or in bespoke investments for existing clients.
"Our experience has proven to be attractive to investors and has been instrumental in building the fund's systematic investment approach while allowing us to test the portfolio across a range of different market conditions and macroeconomic environments."
This can also be read here: Investment Week