TORONTO (HedgeWorld.com)–Pro-Hedge launched a new hedge fund that will charge no management fees in any quarter with negative returns.
Company officials, who hail it as a first for the fund business, are selling the new Pro-Hedge Capital Preservation Fund on its “no-fee guarantee.” The fund is a low-risk, multi-strategy, multi-manager fund of funds that consists of eight styles and 25 alternative investment managers.
The fund is designed to preserve capital through low-risk performance derived from a diversified basket of arbitrage-style hedge fund investments uncorrelated to stock or bond markets, said Stuart McKinnon, chief executive and president of Pro-Hedge, in a statement.
The firm also has a companion fund with no fees. The Pro-Hedge Capital Preservation Plus Fund is similar to the Pro-Hedge Capital Preservation Fund except that its underlying investment in the Ontario Partners Fund is leveraged to give investors 200% exposure.
Both funds have an annual management fee of 1.5% that is only charged if performance remains positive during the quarter.
Pro-Hedge also launched this past week a series of guaranteed notes. Guaranteed Investment Solutions Series 1 follows the launch of a Pro-Hedge protected note Previous HedgeWorld Story.
BNP Paribas provides the notes’ 100% principal guarantee. G.I.S. Series 1, with a C$2,500 investment minimum, avoids equity directional managers and will be 80% allocated to the Ontario Partners Fund and 20% to the Princeton Leveraged Fund LP.
Canadian investors can access the two funds only through the Pro-Hedge offering. The Ontario Partners Fund originally was set up by Mansur Capital Corp. to conservatively manage the Chicago-based firm’s capital using market neutral strategies. The Princeton Leveraged Fund is a multi-adviser, multi-strategy fund managed by the 6800 Capital Group, Princeton, N.J.
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