3 Aug 2010
Duet Alternative Investments has announced the launch of the “DAI Dynamic Trading Fund” on the 1 August 2010. The Fund is a CTA Fund of Funds investing in a diversified group of CTA Funds with varying investment styles.
The decision to launch a CTA Fund of Funds was predicated on the fact that CTAs have historically provided an excellent source of uncorrelated returns, and have typically exhibited negative correlation to equities and other asset classes during periods of market disruption. Other attractive characteristics include their ability to invest both on the long and short side, in a broad range of highly liquid markets including: global currencies, equities, interest rates and commodities. This type of return profile and flexibility makes the strategy a worthwhile addition to most investment portfolios, particularly in the current environment when macro risks are elevated.
Doug Morse, Portfolio Manager of the “DAI Dynamic Trading Fund”, will be running the portfolio under the group’s leader, Eric de Candia, CEO of Duet Alternative Investments. Based in New York, Doug began his career in alternative investments in 1997 as a Vice President at Alliance Capital Management, and has gone on to manage several multi-strategy fund of funds for both HNW and institutional investors. Among those portfolios was the ISA Global Opportunities Fund, recipient of the AIMA Australia’s 2008 Best Fund of Funds Award. As the result of a 2009 acquisition of Investor Select Advisors by Duet Group, Doug joined Duet Alternative Investments as Chief Investment Officer for the US.
The decision to launch a CTA Fund of Funds was predicated on the fact that CTAs have historically provided an excellent source of uncorrelated returns, and have typically exhibited negative correlation to equities and other asset classes during periods of market disruption. Other attractive characteristics include their ability to invest both on the long and short side, in a broad range of highly liquid markets including: global currencies, equities, interest rates and commodities. This type of return profile and flexibility makes the strategy a worthwhile addition to most investment portfolios, particularly in the current environment when macro risks are elevated.
Doug Morse, Portfolio Manager of the “DAI Dynamic Trading Fund”, will be running the portfolio under the group’s leader, Eric de Candia, CEO of Duet Alternative Investments. Based in New York, Doug began his career in alternative investments in 1997 as a Vice President at Alliance Capital Management, and has gone on to manage several multi-strategy fund of funds for both HNW and institutional investors. Among those portfolios was the ISA Global Opportunities Fund, recipient of the AIMA Australia’s 2008 Best Fund of Funds Award. As the result of a 2009 acquisition of Investor Select Advisors by Duet Group, Doug joined Duet Alternative Investments as Chief Investment Officer for the US.
“As a Fund of Funds Manager, we are always seeking ways to effectively diversify returns and exposures, and given the attractive qualities of CTA Funds as a group, we believe a diversified portfolio of CTA Funds can provide the benefits of favorable risk adjusted returns, high liquidity and low correlation, while lessoning the potential drawdown risk and volatility relating to single CTA Fund allocation”, said Mr. Morse. “The Fund will also be used to provide a more diversified exposure to CTAs in our existing Multi-Strategy Fund of Fund Portfolios.”
Eric de Candia, CEO of Duet Alternative Investments, said: “Duet Alternative Investments continues to build on our strong performance, structured investment process and risk management, and we expect the DAI Dynamic Trading Fund will provide our clients with another tool to help them navigate through these highly uncertain times.”
