NASSAU (HedgeWorld.com)–Magnum Fund Management Ltd. has launched Magnum Optimized Portfolio Fund, a fund of funds that will screen more than 5,000 hedge funds globally to identify 15 to 25 “best of breed” managers, the company announced.
The fund, launched April 1, will seek consistent returns of between 10% and 18% a year with relatively low volatility, aided by consultant Ibbotson Associates Advisors LLC, Chicago. It is available only to non-U.S. investors and U.S. tax-exempt investors.
“Superior fund of hedge fund performance comes from a combination of superior manager selection and portfolio allocation among various hedge fund styles,” said Dion Friedland, chairman of Magnum, in a statement. Ibbotson has developed a proprietary portfolio optimization method, which allows for a more accurate assessment of hedge fund performance than traditional methods, according to the statement.
Magnum will manage the portfolio. GP Asset Management LLC, Fort Lauderdale, Fla., will own the fund jointly with Magnum. The seed capital is US$10 million.
The auditor is BDO Mann Judd, Nassau, Bahamas. Legal counsel for matters pertaining to Bahamian law is Fitzgerald & Fitzgerald.
Magnum was founded in 1994 by Mr. Friedland, and it now offers nine offshore funds of funds, two offshore feeder funds and two funds of funds that are limited partnerships for U.S. taxable investors. It also customizes funds of funds for private banks, brokers, pension funds, institutional investors and high-net-worth families and individuals.