“The principal objective of Herakles Trend Fund I is to invest and generate attractive, risk adjusted returns for its investors by using our ‘Proprietary Computer Model’ (PCM), which monitors and analyzes a mix of performance indicators that have been useful in identifying momentum trends.” The firm said in a press release, “Our PCM targets emerging ‘leaders’ among individual stocks within a specific industry sector; emerging ‘leaders’ among sectors within a broader diversified index as well as targeting the relative momentum trends in indexes among different markets. (e.g. Germany vs United States).”
The PCM is designed for a move toward cash in the face of diminishing momentum trends. Herakles Trend Fund I, will utilize the S&P 100, the German DAX and German MDAX, (S&P 100 50%, DAX 30%, MDAX 20%) as it’s initial targeted indexes. The Fund invests in large to midcap stocks among the three indexes providing liquidity. The PCM determines among the three indexes which stocks to establish a long position, when to sell a position, when to move into cash and when to short the indexes.
“With the PCM fully developed by the end of 2011 we locked in the system and decided to conduct a dry run, as we formed all the necessary entities and documentation for the launch of the Fund. Our performance YTD as of Dec 31, 2012 is 20.74%.” Herakles concluded, noting that all returns through Dec 31, 2012 are based on a modeled PCM and are entirely simulated.
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