HedgeCo.net – NEW YORK, June 6, 2007 – Stonebrook Capital Management, LLC, (“Stonebrook”), a leading alternative investment firm specializing in Alternative Beta solutions, today announced the launch of an Alternative Beta strategy in a fund format – the first of its kind in the U.S.
The just-launched product uses a patent-pending methodology and technology that seeks to match the performance of the hedge fund industry by investing in a portfolio of liquid financial instruments in order to replicate the risk-return profile of the major hedge fund indices.
“The growth in hedge fund assets means more capital is chasing fewer ideas and manager talent is diluted,” said Jerome Abernathy, Ph.D., Founder and Chief Investment Officer of Stonebrook.
“The average hedge fund now generates most of its net returns by bearing market risks, rather than producing pure alpha. With high market liquidity in the financial instruments that comprise the portfolio and stringent back-testing, we believe the Stonebrook Alternative Beta product is able to replicate this return stream,” added Dr. Abernathy.
The product’s five-year pro forma results have outperformed both the Hedge Fund Research, Inc. (HFRI) Index and the HFRI Funds of Funds Index, net of fees and with comparable volatility. The product will be offered both domestically and offshore to only qualified individuals, institutions and financial advisors.
“We believe this product also provides an attractive return stream regardless of whether it’s replacing a hedge fund allocation or not,” said Dr. Abernathy.
Dr. Abernathy is the former Head of Research of Moore Capital Management and co-authored the seminal paper on Alternative Beta and the character of hedge fund returns. Dr. Abernathy received his B.S. degree from Howard University and an M.S. and Ph.D. from the Massachusetts Institute of Technology.
About Stonebrook Capital Management
Stonebrook Capital Management LLC is a leading alternative investment firm specializing in Alternative Beta solutions for institutional and qualified individual investors. Stonebrook launched the first Alternative Beta strategy in a fund format – the first of its kind in the U.S. with patent-pending methodology. Since 1993, Stonebrook has structured and managed over $1 billion in asset management products for approximately fifty corporate clients. Based in New York City, Stonebrook is a Registered Investment Advisor with the US Securities and Exchange Commission and is licensed as a Commodity Trading Advisor and Commodity Pool Operator with the National Futures Association.
