Fund of hedge funds manager Syz Asset Management will unveil a defensive multi-manager product on December 1 for the managed accounts platform it has developed with UBS.
Syz describes the platform as “a next generation platform” because it will enable hedge fund managers to keep their existing arrangements with prime brokers and frequency of dealing. Syz will be responsible for the investment side of the platform while UBS will provide administrative, reporting and risk management services.
Syz will select hedge fund managers for the platform and develop multimanager products that invest in the managed accounts available on the platform. The firm will also run its own mandates on the platform.
Syz says the new multi-manager product will combine two investment strategies to generate returns that are not correlated to traditional asset classes and produce strong performance during difficult times where equity markets are undergoing a correction.
Syz head of alternative investments José Galeano says: “One advantage of managed accounts is the segregation of assets and the second is risk management. We determine the investment mandate and the underlying manager cannot trade outside the risk mandate.”