Lifecycle stage key factor in new RPM Sicav CTA
RPM Risk & Portfolio Management, the Stockholm based CTA/Macro specialist, is launching a Luxembourg domiciled Sicav – RPM Evolving CTA – which aims to invest in CTAs identified as being in the “most competitive stage of development”.
The new fund is intended to combat the trend seen in the alternative asset management sector for investors to favour large and well known managers, which is leading to asset concentration.
Instead, RPM believes that smaller managers that are leaving the start-up phase and entering the growth phase offer the most competitive returns.
RPM CEO Mikael Stenbom said: “The new fund aims to identify and invest with CTAs that have the potential to develop into the next generation of industry leaders. Our intention is to find them before they have grown too big – or too old – to maintain the performance that typically occurs during the first 5 to 7 years of their existence.”
“The Fund is a result of analytical work that started in 2010 that can be described as a systemization and verification of our experiences from 20 years of investing with CTAs. The industry leaders today were unknown to most investors when their performance was the most competitive. The “Evolving CTAs” that will trade for the new fund are thus unknown to most investors today, but have demonstrated a unique ability to deliver performance – in most cases with new, innovative, ideas and methods.”
RPM Evolving CTA will only invest with CTAs that are in the Evolving phase – defined by age and AuM – RPM said. Those that no longer meet the criteria or return targets will be dropped from the fund. The Luxembourg Sicav is initially being offered to institutional investors with €, SEK, $ and CHF share classes and a minimum investment of €0.5m or equivalent.