Syz & Co's new fund, Oyster Multi-Manager Tail & Trading, will combine a commodity trading advisor (CTA) strategy with active management to hedge against extreme risks known as tail events.
Syz & Co’s new fund, Oyster Multi-Manager Tail & Trading, will combine a commodity trading advisor (CTA) strategy with active management to hedge against extreme risks known as tail events.
Oyster Multi-Manager Tail & Trading has been developed by Syz Asset Management, the institutional asset management arm of the Swiss private banking group Syz & Co.
Its aim is to provide low correlation to financial markets and other alternative strategies to improve the risk/return profile of a traditional portfolio and protection in the current environment.
According to Syz & Co, the key benefits of CTAs are low correlation with the financial markets, a systematic management approach, high liquidity and positive yield expectancy. However, the group also recognised CTA strategies are volatile and can undergo abrupt trend reversals.
CTA funds have outperformed other hedge fund strategies in recent months. According to the Lyxor Global Hedge Fund Index, CTAs were one of two strategies to deliver positive returns in November. Long term CTAs returned 0.66% and short term CTAs 0.47% compared to the negative 0.44% delivered by the index as a whole.
The fund will invest its assets in the products based on the managed accounts platform developed through the cooperation between Syz Asset Management and UBS Investment Bank since November 2011.
UBS operates the platform and Syz Asset Management proposes and selects managers to be included on it.
Oyster Multi-Manager Tail & Trading provides weekly subscriptions and redemptions. The fund is primarily aimed at an institutional client base.
The Luxembourg domiciled fund, a sub-fund of Syz Asset Management’s Luxembourg Part II SICAV 3A Alternative Funds, has weekly liquidity.
Geneva-headquartered Syz & Co has CHF25bn (€20bn) of assets under management and offices in Milan, Rome, Madrid, Bilbao, Paris, London, Luxembourg, Vienna, Nassau and Hong Kong.
The Swiss group was founded in 1996 by Eric Syz (pictured), Alfredo Piacentini and Paolo Luban.