MPG Launches Three New Share Classes In Its Stellar-Performing Hedge Fund
Extra share classes in euro, Swiss franc and sterling give added options for investors worried about equity and bond markets
Managing Partners Group (MPG), the international asset management group, has launched new share classes in its Vita Nova Hedge Fund (the "Fund"), which has delivered 47 consecutive months of positive returns since its launch in August 2014. The new share classes have been launched in response to demands from investors concerned about the threat of slumps in equity and bond markets and are looking for outstanding performers in alternative asset classes.
MPG is launching euro, Swiss franc and sterling share classes to provide wider access to the Fund to investors who prefer to invest in their base currencies. The Fund, which previously offered just a US Dollar share class, has delivered 23.66% over the year to end-January, outperforming its benchmark, the Eureka Hedge Fund Index, by an average of 2.13% per month.1 The Fund has returned 116.24% since launch.
MPG, which expects the US economy to slip into recession by the middle of this year, is receiving interest from investors who share this view and are worried about more shocks to bond and equity markets globally.
Jeremy Leach commented: "Equities are clearly overpriced, and their limited upside potential is heavily outweighed by the potential for a market correction. Markets may move sideways but there is potential for an event-driven slump. Investors have already been diversifying into gold this year but many are keen to invest in other asset classes, such as the Vita Nova Hedge Fund."
"However, a lot of investors are not keen to have just US dollar holdings. If they are not based in USD then they must implement currency hedging, which our new share classes will enable them to avoid. There will also be a switching facility to enable investors to switch between currency classes on monthly dealing days."
The Fund had divested virtually all its equity exposure by early November 2018 except for a limited number of unlisted stocks. Since then it has raised its exposure to gold. Its global macro investment mandate means it can move between asset classes offering arbitrage opportunities. The investment management team may rely on economic forecasts and analysis in respect of interest rate trends, macroeconomic developments, global imbalances, business cycles and other broad systemic factors that may lead to arbitrage and alpha opportunities.
MPG is an award-winning business, having been named the 2018 Alternative Investment Firm of the Year – Europe by The European business publication, while its High Protection Fund won the Best Diversified Fund (Five Years) and Best in Insurance-Linked Investments categories in the 2018 Corporate USA Today Awards. MPG is a multi-disciplined investment house that specialises in the creation, management and administration of Cayman Islands regulated mutual funds and issuers of asset-backed securities for SMEs, financial institutions and professional investors. The wider Group currently has over $500m assets under management.