Protecting investors when they need it

By design, Blue Sky’s Hedge Fund strategies aim to generate returns and minimise capital losses during periods of market stress. Hedge funds are a critical diversification tool used by most of the world’s leading institutional investors. Blue Sky’s approach to hedge fund management is based on developing products that can improve the risk-return profile of investors’ portfolios. Blue Sky aims to achieve this by creating strategies that are complementary to portfolios with a concentration of equity risk.

“Hedge fund investments have become widely accepted as a reliable means to strengthen the diversification of investment portfolios.”
Simon Kitson, Blue Sky Hedge Funds

 

Dynamic Macro

The Dynamic Macro Strategy (Dynamic Macro or The Strategy) has been developed to help investors manage the over-concentration of equity market risk in their portfolios. The Strategy seeks to deliver superior risk adjusted returns through the economic cycle by investing across a diverse range of proprietary trading models.

Many investment portfolios are highly exposed to equity markets through direct stock market investments with typical diversification approaches adding international equities, property investments and equity focused investment managers.  While this represents sound diversification during periods of stable market volatility, during periods of market stress many of these investments may lose value.

Dynamic Macro aims to profit during these periods. Since trading in the Strategy commenced in 2007, positive returns have been delivered during most of the weakest months for the ASX200 over that period as illustrated in the graph.

This ability to generate profits during spells of equity market stress has resulted in Dynamic Macro having a firm negative correlation to both Australian and US equity markets.

Dynamic Macro has received international recognition winning the best Macro Fund Award (2015) and best Quant Fund Award (2016) at the HFM Asian Hedge Fund Awards. BarclayHedge listed Dynamic Macro as one of the Top 20 Commodity Trading Advisors (CTAs) globally in 2016 based on 5 years of performance.

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Performance of Dynamic Macro during the worst periods of ASX200 since 2007 1

1 Disclaimer: As at 30 June 2017. Performance returns from Nov 2007-30 Apr 2010 are from the Access SRA Fund –Class 16 (ARSN 127 228 675) which was managed using the Strategy during that period. Performance from May 2010 to present are for the Blue Sky Alliance Fund (ARSN 140 253 685) (Dynamic Macro class) (APIR CODE COL0020AU). All returns are net of fees, costs and taxes. Investors are reminded that past performance is no indication of future performance. 

How to Invest in Hedge Funds

To make an investment in the Dynamic Marco Strategy or find out more information, please contact Simon Kitson skitson@blueskyfunds.com.au