Platinum Capital Management has launched the Platinum All Weather Fund. The fund manager says the new fund is designed to deliver very low volatility absolute returns. The portfolio is invested in broad-based equity index baskets, long and short, with an options overlay to hedge and enhance returns. The majority of the performance is expected to stem from taking advantage of mispriced options and from option volatility, then supplemented by superior execution and directional movement of the underlying Index baskets. This fund style is attractive to investors as it maximises focus on proactive risk management, consistent monthly performance and superior liquidity, with no individual stock risk.
“There are strategies – proven systematic strategies – which, when applied by exceptional and experienced managers, generate regular and impressive returns with very low volatility,” says Craig Reeves, Managing Director of Platinum Capital Management. “Through Platinum All Weather, we can now offer access to one of the very best of these where, for the past eight years (January 1995 to December 2002), there has been only one fractional losing month (-0.03%) and an average annual return of 17.3 per cent. I believe this is a compelling investment at any time but particularly in today’s high volatility environment where the volatility of the S&P 500 is at uniquely high levels (in the eight year period, volatility of the S&P 500 was 16.70 per cent, volatility of the managed account underlying Platinum All Weather was 3.12.”
The Platinum All Weather Fund was launched at the beginning of April and is available, internationally, to qualified investors. Minimum direct investment is $100,000 or, for smaller investments, $25,000 via the Platinum Wealth Management Bond or Nominee. The Fund’s maximum investment capacity is $100m.