Fund-of-hedge funds specialist Ferro Capital LLC has launched the Ferro Total Return Hedge Index Certificates, which are linked to the firm’s Total Return Strategy.
For the first time, Ferro Capital’s Total Return Strategy is available in the form of a certificate for German investors, through certificates issued by AAA-rated Rabobank. The Ferro Total Return Strategy invests across multiple hedge fund managers and multiple hedge fund strategies in an effort to deliver attractive long-term equity-like returns and lower volatility than major equity markets. However, the Ferro Total Return Strategy builds on core allocations to managers pursuing the hedge fund strategies included in Ferro Capital’s flagship market neutral Absolute Return Strategy by also allocating to certain managers pursuing more market-directional hedge fund strategies such as long-short equity and global macro.
“We are very pleased to be able to make our Total Return Strategy available to a wider audience. Our range of multi-manager programs is designed to provide our clients with a choice of risk-return profiles, which may be used to help achieve individual portfolio diversification goals,” says Kevin Ferro, CEO of Ferro Capital. “Across the board during the first four months of 2006, our programs posted their best their returns ever, with the Ferro Absolute Return Index up an estimated +7.1% and the Ferro Blue Chips Strategy up an estimated +7.2%, and the recent environment has been particularly beneficial for our existing Total Return Strategy program, which was up an estimated +7.5% over the same period.” says Ferro.