HedgeCo.Net (West Palm Beach)- Naples, FL based Tuono Corporation is launching a new fund series, the Tuono Multi-Series LLC. The Fund will be open to investors on Dec 1, 2006 and will be domiciled in Delaware.
The Multi-Series LLC Fund is set up as a “synthetic†absolute return fund whose mandate is to generate a high degree of portable alpha through the customizable blending of complementary, non-correlated styles. The two share classes are the Tuono Multi-Strategy Absolute Return Series and the Tuono Multi-Asset Alpha Series.
The Absolute Return Series is a systematic options arbitrage focused on short to medium-term gains versus long-term directional profits. The quantitative complement (the Alpha Series) is ashort-term, global macro strategy that trades financial futures, foreign currencies, individual equities and commodities. It capitalizes on market volatility, with a primary emphasis on directionalreturns versus using options to capture directional moves. Tuono has created an Alpha Import Analyzer that helps clients split an allocation between the series, in order to attain a preferred levelof drawdown/volatility, versus performance.
Tuono Management states “The Tuono Corporation was founded on the belief that an absolute return strategy can deliver a consistent and reliable “pure†alpha benefit, over an extended period of time. Its investment objective is to produce an alpha that can be applied to a wide variety of portfolio structures, particularly those that are heavily weighted in equities or fixed income. Tuono actively manages risk in order to achieve risk-adjusted returns that have low, or near-zero correlations. Being 3(c)(7) funds, the firm’s offerings are primarily designed for institutional participation.”
The minimum investment requirement is $1 million, and the management and performance fees vary per share class, from 1.5% to 2% and 20% to 25%, respectively. The fund also has a “loss carryforward provision.â€Â
The new fund allows for monthly additions and quarterly redemptions with a one year lock-up. Man Financial and Goldman Sachs provide prime brokerage services and Spicer Jeffries LP and ATC FundServices handle the auditing and administrative functions, respectively. The new fund has also enlisted the services of Edwards Angell Palmer & Dodge LLP, as legal counsel. Additionally, Tuono isregistered as an investment adviser with the SEC and is a member of the NFA. Tuono currently has the Tuono Circle LTD fund listed on the hedge fund database, www.hedgeco.net.
