Kingswood Defensive Alpha (“KDA”) is a UCITS fund of funds, investing in liquid alternative UCITS funds with the goal of providing access to best of breed hedge fund UCITS managers  and a return stream that is defensive and uncorrelated to equity and fixed income positions for investors.

The fund’s objective is to produce an absolute return target of cash +4-5% after fees with a minimisation of capital drawdown.

 Volatility of the fund is expected to be approximately 4-5% providing daily liquidity with 4 days’ notice.

We believe that there is significantly increased demand for portfolio diversification in the post-Coronavirus world and hedge funds are often bought to fulfil this role on a portfolio. However, as a collective, hedge funds have delivered correlated returns and investors are receiving a high level of market beta in their return and comparatively low levels of alpha.

 Only low correlated, alpha generative hedge funds can provide diversification to a portfolio. These represent a small proportion of the hedge fund market, as the majority are directional and bear the underlying risks of their asset class.

 KDA is constructed to produce high alpha (for return), low correlation (for diversification) and generate a defensive bias (for asset allocation benefits). This is achieved through targeted strategies only. KDA provides a one-stop shop for uncorrelated hedge fund exposure in investor portfolios.

 Investment management fees are 50bps with no performance fee. The fund will access underlying managers in the most cost-effective manner, aiming to keep the average management fee of the underlying managers around 1%. This is significantly lower than most retail investors would be able to access as these retail classes are typically 50 to 100bps higher.

KEY POINTS

Kingswood Defensive Alpha

01

KDA is differentiated because it deliberately targets defensive returns by design, when almost all of its competitors are benchmarked to a hedge fund index.

02

KDA curates diversification of alpha sources through four portfolio construction categories: Uncorrelated Alpha, Portfolio Protection, Risk-Seeking and Cash Replacement.

03

Core strategies include Equity Market Neutral, Tail Risk, Discretionary Global Macro, Trend Following Futures, Systematic Global Macro, Event-Driven Arbitrage, Short Term Quantitative Futures, Fixed Income/Credit Relative Value, Volatility Arbitrage and Options Arbitrage.

Terms and Conditions Apply

Read the disclaimer

MontLake Asset Management Ltd, 23 St. Stephen's Green, Dublin 2, D02 AR55, Ireland is licensed to provide Investment Management services to Professional Clients (including Collective Investment Schemes) by the Central Bank of Ireland.

MontLake UCITS Platform ICAV is an umbrella open-ended Irish collective asset-management vehicle with segregated liability between Funds formed in Ireland under the Irish Collective Asset-management Vehicles Act 2015 and authorised by the Central Bank as a UCITS pursuant to the UCITS Regulations.

The Manager of MontLake UCITS Platform ICAV is MontLake Management Ltd, a company regulated by the Central Bank of Ireland. 

This website is directed mainly for professional and institutional clients who possess the necessary experience, knowledge and expertise to make their own investment decisions and properly assess the risk that it incurs.

Information on this website was obtained from various sources and the company does not guarantee its accuracy. The information is for your private use and discussion purposes only and expressed views and opinions may change.

The Performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable guide to future performance. The value of your investment and their income may go down as well as up.

Your investment may also be subject to currency, interest rate, as well as market fluctuations. Consequently the Investor may not get back a sum equal to that he / she originally invested.

Investors should note that an investment in those Sub-Funds which may invest in emerging markets should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors.

The Sub-Funds may invest in Over the Counter as well as Exchange Traded derivative instruments to enhance return or hedge against fluctuations in security prices or market rates as well as to short sell a security through the use of a derivative instrument. Transactions in derivative instruments involve a risk of loss or depreciation of capital due to adverse changes in security prices, exchange rates or interest rates or in the case of OTC instruments default of Counterparty. This investment may not be suitable for all types of investors. It is therefore recommended that you consult your investment advisor.

A commission or sales fee may be charged at the time of the initial purchase for an investment and may be deducted from the invested amount therefore lowering the size of your investment. The Investment Manager will be entitled to receive a performance fee as well as a management fee, calculated on a daily basis and paid quarterly by the sub-funds.

The Levels and bases of taxation are dependent on individual circumstances and subject to change and therefore it is highly recommended that you consult a professional tax advisor.