FundCreator Endorsements
The average investment portfolio is seriously under-diversified, i.e. most investors take too much risk,
while getting too little in return. The few that are aware of this unfortunately look in the wrong place
for a solution. Many hedge funds for example are nothing more than repackaged equity and credit risk,
which doesn’t help to further diversify investors’ portfolios. To truly diversify their portfolio,
investors need something different, preferably something very different. This is where FundCreator
comes in. The FundCreator system allows investors to create new risk-return profiles, which are not
available elsewhere in the market. Risk profiles that do make for good diversifiers. After a substantial
test period, we started using FundCreator in November 2007 to manage the risk profile of two of our
UCITS III funds, both aiming for zero correlation with the stock market. Since then, in an extremely
difficult market environment, the system has fully delivered on its promise and has provided exactly
the type of returns we asked for. Put simply, FundCreator is the great leap forward that the investment
management profession has been waiting for, for far too long.
Harold Heuschmidt
Partner Aquila Capital GmbH and CIO SVMN Funds, Hamburg, Germany.
Although broad-based hedge fund index replication is an obvious application of FundCreator, it surely isn't the
most interesting, as such indices tend to be highly correlated with the stock market. It is indeed as the
FundCreator marketing says: "Why replicate if you can now create?" We tested FundCreator for more than three
years and it has continued to perform to our full satisfaction. FundCreator is indeed a revolutionary risk
management tool, allowing you to synthetically create either what is missing in your portfolio or to create
your own portfolio with predefined statistical properties.
Gabriele Magris
Citco Pension, Jersey.
More than anything else, Fund Creator is a powerful risk management tool in the most complete sense of the term.
Tired of being bitten by negative skew, hedge it away with an overlay distribution with positive skew manufacured
by Fund Creator. Want to reduce the beta risk in your portfolio, create a zero correlation replicant of your
benchmark with Fund Creator. Fund Creator's behaviour in the unsettled markets of 2008 has been exemplary as
it has forged through the stormy seas of volatility to do exactly what we programmed it to do. We are tremendously
impressed with its operational efficiency and the results we are receiving.
Tristram S. Lett
Managing Director, Integra Capital, Canada.
FundCreator is the most efficient tool to create returns with pre-defined statistical properties at the end of
any given time horizon. Based on powerful dynamic replication technology, it opens new doors to the passive
replication of hedge funds and hedge fund indices using simpler and more liquid instruments.
Prof. Dr. Francois-Serge Lhabitant
Chief Investment Officer Kedge Capital and Professor of Finance HEC Lausanne and Edhec Business School
FundCreator is a very impressive piece of work, with an intuitive and easy to use website. The model is
based on a completely novel approach for addressing the subject of generating low-cost investment returns,
which may prove to be revolutionary in the future.
Pete Eggleston
Head of Quantitative Solutions, Royal Bank of Scotland.
Modern investment practitioners should be aware of the empirical fact that there is hardly any such thing
as “pure alpha“ that is generated by the wide universe of hedge funds that are available to investors.
Despite all dedication and skill that is applied to deliver superior and stable returns, many hedge funds
appear exposed to systematic risk drivers. Sensible investors are no longer willing to pay 2/20 for
returns that can be captured directly or synthetically at reasonable cost. FundCreator is one of these
enlightening innovations in Finance that enable investors to improve the efficiency of their portfolio
structuring process. It offers a gateway to capturing very specific and mostly alternative risk premia
at very competitive cost levels. It can serve to build portfolios within a core-satellite framework, where it can supply sources for the satellite segments. And it can be used in tactical asset allocation frameworks, to capture excess returns that show cyclical behavior. Indeed a great enhancement to the investor’s toolkit.
Fons Lute
Managing Director Alternative Strategies, PGGM Investments, The Netherlands.
Tired of paying high hedge fund fees for beta dressed up as alpha? Then try the FundCreator to create your
desired return distribution. Intuitively it makes a lot of sense and it is very easy to use.
Dr. Leif Hasager
Executive Vice President, Bankpension Copenhagen.
Attracted by the favourable risk-return characteristics of Alternative Investments like hedge funds and
commodities, a growing number of institutional investors have increased their allocation to these strategies
over the past 5-10 years. What is generally overlooked is that these allocations are accompanied by
significantly higher costs (fees, trading costs) than what is generally found with traditional investments.
FundCreator offers the possibility to investors to replicate the desired return distribution without
foregoing the high costs normally found with Alternative Investments, leading to a better risk-return
trade-off. FundCreator is a significant contribution to a more efficient implementation of investment strategies.
Hans de Ruiter
Senior Portfolio Manager, Hoogovens Pension Fund, The Netherlands.
FundCreator reflects original and thought provoking views on investing. It bypasses the daily-adjusted expert
views on what to buy and what to sell, and goes directly for the end-result: the risk-return distribution,
including its correlation to other asset returns, that is produced by the investment process. In the end the
message is clear: why pay 2 plus 20 to invest in a hedge fund, if you can get the same characteristics in a
cost efficient way through a dynamic trading strategy involving futures?!
Dr. Bas Peeters
Head of Structured Products, ING Investment Management, The Netherlands.
FundCreator offers institutional investors what they wish for at a fraction of the fee that the hedge fund
community charges. It is transparent, easy to understand, easy to use, and gives a return distribution of
your choice. What more can you wish for?
Dr. Jan Bo Jakobsen
CEO, Invensure, Copenhagen, Denmark.
The concept of FundCreator is extremely appealing. Without claiming any overly optimistic sources of alpha,
FundCreator generates risk-return profiles similar to hedge funds, but at much lower costs. FundCreator and
the research behind it are a significant step forwards in demystifying hedge fund performance and an
important move towards more cost-efficient investments in alternatives.
Dr. Theo Kocken
CEO, Cardano Risk Management, Rotterdam, The Netherlands.
FundCreator is a revolutionary tool for portfolio diversification. Numerous academic studies of hedge funds provide
a strong foundation for the work culminating in this remarkable innovation. FundCreator offers an efficient,
low-cost means to create a tailor-made hedge fund that duplicates a desired statistical profile. Fund performance
is achieved using highly liquid futures contracts in efficient markets, where execution costs are minimal. Reducing
costs is fully equivalent to earning higher returns, and in this case less risky as well.
Prof. Dr. Anthony F. Herbst
Partner New Market Solutions LLC and founding editor of The Journal of Financial Engineering.
FundCreator brings the "hedge" back into hedge funds. By replicating the distributional properties of hedge
funds with actively traded derivative products, investors can not only better understand the characteristics
of these funds but can also create customised investments without concerns regarding transparency or liquidity.
All this can be done without paying the exorbitant fees often associated with hedge funds, which will assure
investors a higher return for the same risk profile. As an active investor of my own funds, my only question
is how can I sign up?
Prof. Dr. Robert Tompkins
Professor of Finance Hochschule für Bankwirtschaft, Frankfurt and Honorary Professor Warwick Business School.
More to Come.
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