REFCO Alternative Investments, LLC (RAI), the alternative asset management division of REFCO Group Ltd., LLC (“REFCO”), and Abbey Capital Limited (“ACL”), the specialist alternative investment portfolio manager based in Dublin, have announced the launch of their first fund according to David Henritze, president of RAI, and Tony Gannon, CEO and founder of ACL.
The fund is a diversified multi-manager futures fund, and it opened with more than $40 million from institutional and high net worth investors in the U.S., Europe, the Far East and Latin America. As a Commodity Trading Advisor (CTA) portfolio, it offers access to 11 managers who collectively provide diversification across time frames, countries, markets and styles. The portfolio combines trend following CTAs with non-trend following CTAs that attempt to minimize correlations and create a more consistent return profile.
“Abbey Capital has constructed a robust portfolio that seeks to deliver returns of 12% – 15% with a volatility target below 10%,” said Henritze of RAI. “Their portfolio construction and risk management expertise is unsurpassed, and we are confident that this fund will provide investors with a welcome opportunity to diversify their portfolios with a managed futures product with daily liquidity.”
“We are delighted with the structure and diversity of our inaugural fund,” commented Gannon of ACL. “We allocate through managed accounts only, which solves transparency problems and provides the liquidity required for our comprehensive risk management process.”
RAI and ACL announced the formation of a strategic alliance on November 6, 2003; in order to jointly develop a series of multi-manager managed futures funds specifically designed for institutional and high net worth investors. ACL is responsible for portfolio construction, manager selection and risk management. RAI defines which products should be created. The products are then distributed to the institutional and high net worth marketplace whereby RAI is responsible for investor services. An independent, third party administrator prices each fund on a daily basis.