Stonehenge Asset Management to Launch New Hedge Fund

April 3, 2012 Debbie Jacobs In the News

Stonehenge Asset Management, also known as SAM, recently announced its plans to launch another multi-strategy hedge fund, called Stonehenge Diversified III, over the next couple of months.

SAM’s Steven A. Michael explained that Stonehenge Diversified III is an extension of the original hedge fund Stonehenge Diversified I. However, the firm may reject investors who are not Qualified Eligible Person (QEP) in the future.

Michael added that the fund will use a short-term approach, as well as a medium strategy approach with the help of a statistical volatility algorithm and capital flow data. Trading, he said, will begin May 1st, now that the subscription value has been met.

SAM’s two other funds, Stonehenge Diversified I and Stonehenge Diversified II, are also relatively new, having begun their trading over the past year. Both funds use the SCM Trading Program, which finished with an over 5% increase in 2011. Stonehenge Diversified I also ended the year up 1.66%.

“Although not an outstanding performance we are very happy to have beaten our benchmark Newedge and Barclays Indexes which were all down last year. Stonehenge Diversified II, which began trading in mid-October of last year, and is a principal protected fund, is up 1.24% over the last four months. All of the Stonehenge track record numbers are prepared by our third party administrator,” Michael said.

He continued, “We limit our trade horizon to one week. These two strategies target a fixed profit and stop loss level. Our third approach is the Forward Curve Realignment Strategy which seeks to capitalize on the reversion to equilibrium of the forward curve following the distortions brought about by the rolling of established positions, primarily by long-index investors and speculators. This strategy goes long and short all markets to minimize market impacts. We allocate to each strategy based on a proprietary volatility allocation system. We trade 25 different markets in the U.S. derivatives. We are shortly adding European and Asian markets.”

 

Hedge Fund Industry, Steven A. Michael, Stonehenge Asset Management, Stonehenge Diversified 3, Stonehenge Diversified III,

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