Multi Strategy – Pendulum
This webpage is a marketing communication. Please refer to the Prospectus and the PRIIPs Key Information Document (KID) before making any final investment decisions.
Fund profile
Launched in 1999, Pendulum is a low volatility multi-strategy fund. With a 25year track-record, Pendulum has proven its ability to navigate different credit and interest rates cycles.
- Low volatility multi-strategy fund
- The Fund invests in a selection of proven hedge fund managers in the macro and relative value arbitrage space across equities, credit, commodities and FX
- Investment objective: Low volatility returns through strategy diversification and limited drawdowns
- Expected Annualized Return: 5% to 8%
- Expected Annualized Volatility: below 3%
- Emphasis on downside protection
- Monthly liquidity
Portfolio
- The selected fund managers use non-directional, market neutral and arbitrage strategies. This includes equity, convertible, merger, fixed income, commodity and currency arbitrage. Some managers will use leverage.
- As global macro imbalances are still significant and bank proprietary trading desks are closing we believe that arbitrage strategies can deliver interesting returns while keeping a relatively low levels of volatility
- Concentrated around 15 managers
Alternative to fixed income
- Low volatility profile
- Emphasis on risk control limiting downside capture and generating high Sortino and Sharpe ratios
- All-weather product with the ability to compound with consistency and low correlation to markets
- Diversification across multiple sub-strategies globally via seasoned multi-manager structures
Why invest in this fund ?
- Well-diversified and robust fund comprised of best-of-breed Hedge Fund managers
- Defensive risk/return profile during market drawdowns, whilst generating a high Sharpe and Sortino ratio
- Significant skew towards multi-manager platforms with a strong emphasis on risk control (“Darwinian” approach)
- Access to niche strategies / markets with limited capacity (many invested managers are hard closed and/or have a high minimum investment)
- Negative correlation to global equity markets as measured by its Beta vs. the MSCI World Index
“ With its low volatility profile and low downside capture, Pendulum is a convincing alternative to fixed income. ”
Investment team
This webpage is a marketing communication. Please refer to the Prospectus and the PRIIPs Key Information Document (KID) before making any final investment decisions.
The information contained on this webpage is provided for information purposes only and does not constitute investment advice, an offer, solicitation or recommendation to buy or sell any financial instrument or investment product.
The views and opinions expressed are those of NS Partners at the date of publication and may change without notice.
Investments involve risks, including possible loss of capital. The value of investments and the income derived from them may fluctuate and investors may not recover the amount originally invested.
Past performance does not predict future returns.
Any reference to rankings, ratings or awards is provided for information purposes only and should not be interpreted as a guarantee of future performance.
Please refer to the Prospectus and PRIIPs KID for a full description of the Fund’s objectives, investment policy, risks and costs.
The Fund is authorised and regulated in Luxembourg and may not be offered or distributed in jurisdictions where such distribution would be prohibited.