Stockholm (HedgeNordic) – A German corporate investor is seeking to invest in at least one “limited loss” strategy, with a minimum allocation of €100 million each, as indicated by a request for proposal on Global Fund Search. The strategy must employ a systematic risk management approach to ensure absolute negative returns do not exceed a predefined limit of 5 to 10 percent per calendar year. Furthermore, the investor seeks a strategy that maximizes participation in capital market returns across single or multi-asset classes, with a specific exclusion of alternative risk premia or stock picking strategies from consideration.
Search Criteria
- Universe: Multi-asset or single-asset portfolio within public/listed markets
- The investor is open to single-asset and multi-asset portfolios.
- The allocation is not a hedge against an existing portfolio, so the long component should be included.
- Managers have the freedom to propose what they find most suitable.
- Benchmark: depending on asset classes. The strategy will be compared in its respective class against a CPPI management style.
- Objective: Maximum participation in capital market returns (single or multi-asset, no alternative risk premia, no selection/stock picking) while limiting maximum loss per calendar year at a predefined level between 5 percent and 10 percent using a systematic risk management strategy. The use of a target volatility alone is not sufficient.
- Style: Systematic
- Valuation frequency: Daily
Investment vehicle
- German “Spezialfonds” §284 KAGB
Performance data
- EUR (hedged), gross of management and custodial fees and net of transaction costs
Process outline:
The process will consist of two steps:
- Round one – Short RFP (this search)
- Round two – Invitation to due diligence
Language
The manager can apply in English or German language.
Deadline
June 28, 2024 (Cut-off: Midnight CET, Expiry date inclusive)
To review the search and apply, asset managers need to register here on globalfundsearch.com
