Hermes BPK Partners has launched an alternative investment managed account solution designed to provide portfolio protection to institutional investors.
Alpha Vault Managed Futures uses managed futures programs to try and profit from both upward and downward price trends.
Hermes says strict risk and rules-based controls as well as trend-following commodity trading advisers (CTAs) should limit losses.
This approach will avoid systematic stop losses, Hermes says, while attempting to capture prominent moves in well trending markets through proprietary trading models.
Matteo Dante Perruccio, chief executive officer and founding partner of Hermes BPK, says: “Our approach is to combine a small number of these [CTA] managers to provide a degree of convexity, that is, greater upside potential during trending markets combined with a degree of downside protection in non-trending markets.”
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