The Star AI Portfolio

The Star AI Portfolio

The stars of the long-short sector in one portfolio

Access to around 30 of the best managers in the long-short sector

Everyone’s looking for the stars of the industry. Managers who can bring in returns beyond those of the classic markets – even in times of heavily fluctuating share markets. These so-called ‘Alpha Managers’ are hard to find. The best of them – such as ‘Renaissance’ or ‘Millennium’ – have been delivering high yields for decades combined with few loss-making phases. But quite often they don’t accept any new investors and are difficult if not impossible to access for many investors.

The Star AI Portfolio, whose Co-Investment Manager is PP-Asset-Management GmbH, offers access to around 30 of the best managers from this sector thanks to our long-standing experience in PP-Asset-Management together with alternative investments and a cooperation with Ayaltis AG (Switzerland). Ayaltis has been nominated several times as one of the best European umbrella funds managers in the sector of alternative investments.

The Star AI-Portfolio: An intelligent combination of several strategies.

Intelligently combining various strategies makes the Star AI Portfolio stable and weatherproof. The majority of the portfolio invests in the Areca Value Discovery, a widely diversified fund of hedge funds, of which Ayaltis AG is the portfolio administrator. The variable section of the portfolio is used to give a higher weighting to the best of the approximately 30 managers of the Areca Value Discovery.

The target return is 10 % to 14 % (after fees), with a target volatility of below 8 %.

 Core PortfolioTrading PortfolioCash
Portfolio Allocation 0.540-50%0-10%
Excepted Return 8-12%10-14-%
Excepted Volatility <5%<10%
PortfolioAreca Value Discovery EUR 4–8 liquid Hedge-Funds
CharacteristicWell diversified Fund of Hedge Funds
with 25-35 positions
Opportunistic Strategies

Target Return 10-14% p.a.

At a glance

 

  • > above-average performance potential

 

  • > usage of managers which are difficult or impossible to access

 

  • > low dependency on share and bond markets

 

  • > excellent investment manager Ayaltis AG

The allocation of the Star AI Portfolio

The allocation of the Star AI Portfolio (WKN A17TAX)

The most important components of the Star AI Portfolio

Renaissance Diversified Global Equities Fund

Strategy: Systematic Relative Value – Fund Size: USD 1.900 million

Renaissance Technologies is a renowned manager with a systematic and model-based approach. The fund has achieved a high brand recognition thanks to its Medallion Funds (40 % return per annum for over twenty years), but which has been closed for twenty years. The strategies used in the Renaissance Diversified Global Equities Fund (RIDGE) overlap considerably with those of the Medallion Fund. The differences lie in a longer investment horizon as well as higher regional diversification. Whilst Medallion takes a net-long positioning throughout, it is RIDGE’s aim to position itself more neutrally.

 

Performance of Renaissance Diversified Global Equities Fund International LP:

Performance of Renaissance Diversified Global Equities Fund
Hunting Hill Equity Arbitrage Offshore Fund

Strategie: Discretionary Relative Value – Fondsgröße: USD 140 Millionen

Hunting Hill verfolgt Index-Arbitrage-Strategien im Bereich Exchange-Traded-Funds (ETFs). Der CIO Adam Guren hat vor der Gründung von Hunting Hill sieben Jahre lang bei First New York Securities dieselben Strategien äußerst erfolgreich gehandelt. Makroökonomische Ereignisse, geld- oder fiskalpolitische Entscheidungen, regulatorische Aktivitäten oder unternehmensspezifische Events wie beispielsweise Fusionen, Übernahmen oder Konkursfälle stören die intrinsischen Beziehungen zwischen einem ETF und seinen Einzeltiteln (Komponenten). Durch eine entsprechende Positionierung im ETF und seinen Komponenten wird eine marktneutrale Handelsposition aufgebaut, die davon profitiert, dass sich diese intrinsische Beziehung wieder normalisiert.

 

Performance of Hunting Hill Equity Arbitrage Offshore Fund:

Performance of Hunting Hill Equity Arbitrage Offshore Fund
Higher Moment Opportunities Fund

Strategie: Systematic Relative Value – Fondsgröße: USD 120 Millionen

Beide Gründer dieses Boutique-Hedgefonds, Ravi Singh und Sundar Subramaniam, hatten Lehraufträge an Harvard University und dem Massachusetts Institute of Technology inne. Der Fokus der Strategie liegt ausschließlich auf der Volatilität von Aktienmärkten. Die Stärke des Teams besteht im Entwickeln von Algorithmen zur Berechnung und Vorhersage von impliziter Volatilität. Higher Moment Opportunities verfolgt zwei Kernstrategien: Im Bereich Volatility Trading analysiert das Team die Unterschiede zwischen impliziter und realisierter Volatilität. Beim Relative Value Trading stehen Abweichungen von Volatilitätseinschätzungen aufgrund unterschiedlicher Ausübungspreise oder aufgrund unterschiedlicher Laufzeit im Mittelpunkt.

 

Performance of Higher Moment Opportunities Fund:

Performance of Higher Moment Opportunities Fund
Numeraire Q

Strategie: Systematic Relative Value – Fondsgröße: USD 30 Millionen

Numeraire ist ein interessanter quantitativer Hedgefonds, der von Daniel Fernholz verwaltet wird und akademische Theorien auf Aktien- und Futuresmärkte anwendet. Die Modelle wurden ursprünglich vom Vater des Managers (Robert Fernholz), einem Akademiker der Princeton Universität, entwickelt und sind anpassungs- sowie lernfähig. Der Fokus lag zuerst auf Futures (Rohstoffe und Finanztitel) und wurde nach umfangreichen Simulationen um Aktien erweitert, was zu einer größeren Diversifikation führte. Der Manager stellte sein Können vor allem im schwierigen Umfeld, gekennzeichnet von Sektor-Rotationen sowie unerwarteten politischen Ereignissen (Brexit, US-Wahlen), unter Beweis.

 

Performance of Numeraire Q:

Performance of Numeraire Q
Areca Value Discovery

Strategy: Multi-Strategie Relative Value – Assets under Management: USD 625 million

The Areca Value Discovery is a widely diversified fund of funds, of which Ayaltis AG is the portfolio administrator, and which has achieved outstanding, risk-adjusted returns since 2008. Currently the fund is investing in the following strategies: Global Macro, systematic market-neutral strategies, Long/Short Credit, Even Driven, Distressed Securities and Discretionary Relative Value. The fund is aiming for a target return of 8 % to 12 % per annum after fees and with a volatility of less than 5 % per annum.

 

Performance of Areca Value Discovery:

Performance of Areca Value Discovery
Clinton Lighthouse Equity Strategies Fund (Offshore) Ltd.

Strategy: Systematic Relative Value – Fund Size: USD 430 million

The investment manager Clinton Group Inc. uses rule-based computer models to detect potential anomalies in stock prices. Any models and computer-based programmes used by the investment manager aim to exploit factors relating to fundamentals and historical prices in order to increase returns for the fund and thereby minimise risks to the greatest extent possible. The investment manager sells shares and enters into derivative transactions on the basis of the results of these models. The fund generally invests in approximately 3,000 publicly traded stocks from around the world.

 

Performance of Clinton Lighthouse Equity Strategies Fund (Offshore) Ltd.:

Performance of Clinton Lighthouse Equity Strategies Fund (Offshore) Ltd.

Stand: Juli 2017


Disclaimer:

The information in this presentation portfolio is to be regarded as a marketing communication which does not meet all statutory requirements regarding the impartiality of investment research. There may be conflicts of interest and these have not been ruled out. The information is based on sources we believe to be reliable, but we cannot accept any liability for its accuracy, completeness or timeliness.

The information does not constitute an invitation to buy or sell securities, funds, certificates or our services and, accordingly, is not to be taken as investment advice for these portfolio components. Furthermore, the information does not contain all details essential for an economically significant investment decision. It may differ from the information and assessments provided by other sources/market participants. Please contact PP Asset Management GmbH for detailed information about the portfolio. You should only make a decision about an investment after reviewing all documents and risk disclaimers and after seeking legal, tax and investment advice and after conducting your own market research

Securities and certificates are subject to price fluctuations, which can lead to the loss of invested capital, including total loss. The past performance indicated in the fact sheet is not a reliable indicator of future performance. Forward-looking statements involve risks and therefore may not occur in the future. They are based on plans, estimates and projections. It should not be assumed that we will update or develop these statements in the fact sheet to reflect new information and future events.