CHARLOTTESVILLE, Va. -- Enhanced Investment Strategies LLC,
announced the launch of its new fund, the PNM Capital Preservation
Fund. "It is a unique fund," said Dr. Sanjiv Bhatia,
the Chief Investment Officer of EIS, "because it has
the safety characteristics of a fixed income fund and the
return potential of a hedge fund." Bhatia said the fund
would be especially attractive for institutional investors
that need to protect their corpus and to generate moderate
returns. "Foundations and endowments, for example, are
looking for returns in the 7% to 10% range, but are concerned
about protecting their capital," said Bhatia. "For
them traditional hedge fund strategies which have a directional
component are not appropriate because of the volatility in
the returns stream. This fund eliminates this volatility and
can provide the required returns while still preserving capital."
How can the fund assure capital preservation? Dr. Bhatia
said the fund's capital would be invested in short-term Government
securities. That provides the security and capital preservation
in the fund. The return comes from a proprietary options overlay
strategy that has been developed by the researchers at EIS.
"The overlay strategy is completely non-directional,"
said Bhatia, and relies on the relative mispricing in the
options of perfectly correlated securities. "The key
to eliminating risk in the investment process is to make the
strategy completely risk-neutral and non-directional. The
directional element in a strategy always introduces an unpredictable
element of risk," said Bhatia. "I challenged myself
and my staff to come up with a strategy that could provide
good returns but do so in a way that was completely non-directional.
Much work has gone into this strategy but we think we finally
have something that works."
Another attractive feature of the fund is its fee structure.
"I wanted a fund where the interest of the fund manager
was aligned with that of the clients. I wanted to tell my
clients--if we do not produce what we say we will, you don't
have to pay us a dime." The fund does not have a fixed
monthly management fee, but instead charges only a quarterly
performance-based fee. "We are putting our money where
mouth is," said Bhatia.
EIS, a Virginia based hedge fund, specializes in quantitative
investment strategies.
Disclaimer : The contents of this site are for information purposes only
and does not constitute investment advice or counsel or solicitation for investment
in any security. We will not be liable for any direct, indirect, incidental
or consequential loss or damage that may arise out of using the information
in this site or relating to a linked third party website. Investments in hedge
funds involve a high degree of risk and you could lose all your investment.
You should carefully read a fund's offering materials, fund manager's track
record and related information for specific risk and other important information
regarding an investment in that fund before investing. Hedge funds are available
solely to accredited investors and institutional investors and not to general
public. The information in this website is based on data gathered from publicly
available websites and other information mediums therefore do not guarantee
its accuracy, nor completeness. We do not represent any hedge funds or investment/financial
advisors nor give any investment recommendations.