View more on these topics

Platinum joins premier league

Platinum Capital Management has established a hedge fund that will invest in UK, US and European government securities using a long/short strategy.

The Platinum premier fund aims to produce absolute returns of between 10 and 18 per cent, with low volatility, in all market conditions. It will have what Platinum calls a short-term interest rate arbitrage overlay to hedge and enhance returns. In practice this refers to a form of futures trading. The fund&#39s traders will be looking for any gaps in price between government securities and their corresponding interest rate securities on a daily basis.

Sometimes the gap &#45 or spread &#45 widens and the traders will buy these securities in the expectation that they will narrow. If the spread narrows, the securities will be sold.

The fund will be managed for Platinum by City Fund Management, a company which has an eight-year relationship with Platinum. Platinum has invested both its own money and clients&#39 money with City Fund Management for almost five years.

Platinum Capital Management managing director Craig Reeves explains that the City Fund Management team has been in place for 10 years, while two of the members have been working together since 1969. The team personally invest in their own funds, which Platinum likes as this aligns their interests with those of the investors.

Another important factor is that the team does not use leverage. This fits with Platinum&#39s house view that leverage can be too risky. Instead of leverage, City Fund Management will aim to produce the target returns using high volume trading, possibly around 10 trades a day.

Although this fund is designed for institutional investors, it is also available to high-net-worth individuals who can meet the £60,000 minimum investment. With its low volatility and low correlation to equity markets, the fund could be useful for wealthy investors who want to preserve their wealth in all markets.

However, wealthy individuals may prefer to gain hedge fund exposure through a multi-manager, multi-asset class vehicle such as those offered by Man Investments.

Recommended

Hair today…

The last week has been totally unrecognisable from anything I experienced up until a month ago when I bade farewell to London for a change of lifestyle in the middle of nowhere in the Kent countryside. I am occasionally joined by a spider in my spacious office in the attic, which I have to climb […]

What&#39s on in Manchester

CONFERENCE ROOM 1SESSION 109:00-09:30Opening Keynote SpeechPaul Rich, Sector Leader Manager for Retail Intermediaries, FSA SESSION 209:45-10:45Mortgage Regulation Panel DebateThe panel will discuss which exams intermediaries will need to pass under the new regime, the regulatory position on General Insurance, Lifetime Mortgages, Home Reversion Mortgages,and the options available to intermediaries in order to remain fully qualified. […]

Levy mettle

The Association of Mortgage Intermediaries is keen to establish a voluntary arrangement with lenders to subsidise intermediaries&#39 payments to the Financial Services Compensation Scheme after the industry becomes regulated. A similar subsidy has until now been in place for life and pension IFAs via the Pass scheme set up by product providers although this subsidy […]

Worldwide on track to top 50 with Tudor buy

Worldwide Financial Planning has bought Tudor Investment Services, an IFA business within the Burns Anderson Network. Tudor Investment Services will trade for the next year under the name Tudor Worldwide and will operate from the Worldwide offices in Worcestershire. Tudor was set up in 1999 by financial adviser David Hobbs who specialises in investment work […]

Can you put a hat on?

By Sarah Scott, marketing consultant You might think the question in the title is a strange one. Perhaps even more so when you learn that it’s one of several asked as part of an assessment for Employment Support Allowance eligibility in the opening scenes of the 2016 film, ‘I, Daniel Blake’. Daniel is a carpenter […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com