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The decline in interest rates means that the double digit returns on
deposits enjoyed by investors since the 90’s is coming to an end.
There is now need to have an investment look alike with double digit stable returns
providing minimum risks with regular dividends and having future capital appreciation
with extreme liquidity managed in the form of a Hedge fund.
The fund will also serve investors with large investments requiring active management.
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Why Hedge Funds?
- Superior risk - adjusted returns, regardless of market cycle.
- Allows for the best absolute returns
- Relieves the investors of the burden of doing on-going monitoring or due diligence, that is required once the investment is made
- Provides the right kind of diversification. Only a hedge fund can provide, given its size, multi-strategy approach, and varied market/instrument play
- Perfect pension plan for the future and other planned expenditure like children’s Education
- To deliver net after fees, returns; in the range of 20 - 25% and beat the NSE index by about 500 basis points at all times
- Stable returns/low volatility
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Benefits
- Little correlation with the NSE equity market – that means there will always be value in the holdings and underlying securities will be marketable at all times
- Ensures long-term growth
- We have up to N250m Bank Credit lines to support the fund
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Fee Structure
- Management fee - 5% Management fee is a line charge off to profit
- 15% incentive fee over hurdle of 20% return
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Tenor
Minimum of 12 months
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