New York-based PV Capital has launched an Aggressive Macro Fund. It trades the same strategy as the current Macro Fund, but with a mathematical doubling of the position size, and thus a doubling of the leverage employed.
The firm says the launch of the new fund is based on demand from institutional investors for macro funds that provide high returns, and a willingness to stomach increased volatility to achieve this goal. Historically, PV Capital’s funds have delivered relatively high risk adjusted returns (2.0 Sharp Ratio over the past three years) with extremely low volatility (only 4.6% since inception).
“Many of the investors that we have been speaking with have liked the strategy and fund, but have wanted a bit more volatility and increased return potential,” says Pankaj Vaish, President of PV Capital. “For these investors we have launched a new fund that will trade at 2X the original Global Macro Strategy and target 20% plus returns. For many investors the question was not do we like the manager and the strategy, it was where does a low volatility manager who takes directional bets fit within our risk structure, and which portfolio can we put him in? With the launch of this new Aggressive Macro Fund, we hope to alleviate this problem and substantially increase the assets under management.”
The new fund carries a two and twenty fee structure with monthly liquidity and no lockup. Pankaj Vaish was a Partner at Vega Asset Management prior to launching PV Capital in March of 2000.