Key Takeaways
- • Prime Capital AG, the Frankfurt-based independent asset manager, launched PCAM Select, a new multi-strategy fund of hedge funds, on August 3, 2018.
- • PCAM Select's portfolio holds 16 target funds, with up to 25% of capital allocated to medium-sized, agile managers and the majority allocated to established blue chip managers.
- • The fund targets an annual net return of 7–8% with volatility of 4–5%, and is positioned for institutional investors seeking portfolio stabilization and very low equity beta.
- • PCAM Select follows PCAM Blue Chip Ltd., launched in 2007, which reached approximately USD 850 million before hard-closing at the end of 2017.
- • Prime Capital indicated further highly liquid investment strategy products are planned, expanding its absolute return offering.
Summary
Prime Capital AG, the independent asset manager and financial services provider based in Frankfurt, has launched PCAM Select, a new multi-strategy fund of hedge funds. The launch, announced on August 3, 2018, extends the firm's absolute return product range and follows its PCAM Blue Chip Ltd. fund, which was launched in 2007 and hard-closed at the end of 2017 after reaching an investment volume of approximately USD 850 million.
The fund's underlying portfolio currently comprises 16 target funds spanning the full strategy spectrum. Up to 25% of capital is invested in medium-sized, agile managers, while the majority is allocated to established blue chip managers. According to the announcement, PCAM Select aims for an annual net return of 7–8% with volatility of 4–5%. Publisher summaries describe the vehicle as a Luxembourg SICAV, and it is marketed through Prime Capital Access SA, SICAV-FIS, which is the vehicle's legal umbrella structure.
Dr. Werner Goricki, board member and Chief Investment Officer, said the fund offers institutional investors efficient access to a broad, robust strategy mix with clear return targets. He noted that alongside proven large managers, the portfolio includes selected smaller, focused hedge fund managers to further optimize performance, and that the fund is suitable for stabilizing and diversifying portfolios with very low beta to the equity market. Andreas Kalusche, board member and Head of the Client Solutions Team, said the launch is an important step in expanding the firm's absolute return segment and that further products, including in highly liquid investment strategies, are planned.
A subsequent Hedgeweek report indicates that PCAM Select has since passed USD 100 million in assets under management, making it Prime Capital's second fund of hedge funds.
The fund's underlying portfolio currently comprises 16 target funds spanning the full strategy spectrum. Up to 25% of capital is invested in medium-sized, agile managers, while the majority is allocated to established blue chip managers. According to the announcement, PCAM Select aims for an annual net return of 7–8% with volatility of 4–5%. Publisher summaries describe the vehicle as a Luxembourg SICAV, and it is marketed through Prime Capital Access SA, SICAV-FIS, which is the vehicle's legal umbrella structure.
Dr. Werner Goricki, board member and Chief Investment Officer, said the fund offers institutional investors efficient access to a broad, robust strategy mix with clear return targets. He noted that alongside proven large managers, the portfolio includes selected smaller, focused hedge fund managers to further optimize performance, and that the fund is suitable for stabilizing and diversifying portfolios with very low beta to the equity market. Andreas Kalusche, board member and Head of the Client Solutions Team, said the launch is an important step in expanding the firm's absolute return segment and that further products, including in highly liquid investment strategies, are planned.
A subsequent Hedgeweek report indicates that PCAM Select has since passed USD 100 million in assets under management, making it Prime Capital's second fund of hedge funds.
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