Platinum Capital management has launched a hedge fund that takes advantage of mispriced options and option volatility.
The Platinum All Weather Fund invests in broad based equity index baskets, long and short, with an options overlay intended to hedge and enhance returns. The purpose of the product is to produce absolute returns with low volatility.
The majority of the fund's performance comes from taking advantage of mispriced options and from option volatility. That is supplemented with directional movement in the underlying index baskets, according to Platinum.
The fund is available internationally to qualified investors for a minimum direct investment of $100,000 or for $25,000 via the Platinum Wealth Management Bond or Nominee.
The fund is seeded with $8m and has a maximum investment capacity of $100m.
It will aim for target returns of 10% to 14% per annum. Redemption will be possible on 30 days notice prior to the end of a month, subject to redemption fees.
Investors pay a management fee of 1.2% per annum combined with a performance fee of 15% but subject to high investment, payable monthly.
Platinum Capital Management is an international financial investment group, headquartered in London with a series of international affiliates. The group develops and distributes structured products on funds of hedge funds, offers private wealth management services and acts as an international partner for US hedge fund managers.