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Swiss boutique unveils absolute return momentum fund

Asset manager to serve advisory role on new strategy based on long-running buy and hold investment approach.

Swiss boutique unveils absolute return momentum fund

Zurich-based Lenox Capital has unveiled a momentum-based absolute return fund designed to tap opportunities across country and regional stock market indices.

The long equity/cash portfolio Hill Global Momentum Fund was first conceived in 2009.

It was formally launched in a Ucits-compliant framework on 4 July. It will be managed by Liechtenstein-based IFAG Institutionelle Fondsleitung with Lenox Capital serving as investment advisor.

The fund runs on a long-only basis and intends to hold zero short positions, as well has having no leverage. It responds to buy signals in the market and has an inherent bias towards the equities market.

It invests across a globally diversified array of indices covering different countries and regions. This is while reserving the right to build up cash levels during prolonged down phases.

The fund adopts a series of crossover signals which monitor market performance and momentum on both a monthly and weekly basis.

Speaking to Citywire Global, Markus Bamert, CEO at Lenox Capital, said: ‘This is a broad basket of indices and tactical trading, it is not a CTA fund. It is about targeting investment opportunities across the developed and developing world.’

Bamert said the fund will be broadly balanced between developed and emerging markets. At present, it has a 20% allocation to the US equity market, which is a significant underweight compared to MSCI World allocation of 49%.

In addition, the fund takes shorter-term, more flexible exposure in the emerging markets and currently has 36% of the fund exposed there.

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