The Absolute Return Fund
The Absolute Return Fund implements a strategy designed to take profit from volatilities of various asset classes. The VIX Index, or ”Insurance Index” indicates the 30 days expected volatility of the S&P500 Index which is most of the time overpriced relative to the realized volatility.
The difference is structural since the natural buyers of insurance are willing to pay a premium in case of a severe drawdown in the stock market to hedge their portfolios. On the other hand, the sellers of insurance are willing to take risk if the volatility of the stock market is expected to be less than the price of the insurance, in order to have positive returns over time. The managers of the Absolute Return Fund have developed a quantitative approach to profit both from low volatility and high volatility periods. A discretionary overlay is added to the quantitative strategy to assess various indicators during periods of volatility extremes (low and high).
The volatility as a trading class is rising fast among others in the alternative investment world, due to its very nature and its highly predictable structure.
Our flagship fund Absolute Return is designed to pursue a quantitative based strategy with a discretionary overlay.
The fund is invested in listed volatility related securities as stock and future options, stocks, VIX ETF and in cash to profit from the difference between expected and realized volatility and to lower the cost basis of the fund’s acquisitions.
The Absolute Return Fund is managed by a high skilled and experienced team with various backgrounds. The team gathers one manager with experience in the commodities industry and two managers have a banking & financial backgroud in several major banks and asset managers in London, Paris as well as in Luxembourg. Furthermore the team has a full time risk manager in charge of assessing the fund's risks towards global exposure, market fluctuations, capital allocation between cash and securities.
The asset classes
The Fund’s assets are fully invested in one or more of the following asset classes:
Cash : the Fund can be invested in cash, a class of asset as important as any other. The Fund can be fully invested in cash if no opportunity arises in the volatility markets.
Stocks & futures: the Fund can be invested, long or short, in USD stocks and futures, mainly with a liquid option market.
Gold & Silver : the Fund can be invested, long or short, in gold & silver related listed securities such as, currency convertible precious metals, European & American silver ETFs and futures.
Volatility : the Fund can be invested, long or short, in European & American listed volatility related securities such as buy and sell options and volatility ETFs.
Misc. : The fund has the right to be invested with no more than 10% of its net asset value in any type of listed financial instruments if decided by the managers of the fund.
The fund's structure
The structure of the fund is a Dutch FGR, a Fund for Joint Account or Fonds Commun de Placement. We have chosen this structure as it provides a safe and attractive investment environment for the participants of the R&N Partners Absolute Return Fund.
Circle Investment Support Services B.V. (« Circle »), member of the Circle Partners Group, one of world’s leading asset servicing providers, is the independent administrator of the fund. Circle acts as the Director of the depositary of the fund.
The roles and operations of R&N Partners SA and Circle are completely separated.
Circle establishes the NAV on a monthly basis and is published on Bloomberg and on our website News & Updates page.
Factsheet of the R&N Partners Absolute Return Fund
Fund's legal form
R&N Partners Gold Silver Return
Dutch FGR (fund for joint accoint, fonds commun de placement)
R&N Partners Asset Management B.V., The Netherlands
R&N Partners S.A., Switzerland
Circle Investment Support Services B.V., The Netherlands
Stichting R&N Partners Gold Silver Return Depositary, The Netherlands
Interactive Brokers Ltd., U.K.
ABN Amro Bank N.V., The Netherlands
Interactive Brokers Ltd., U.K.
Euroclear S.A./N.V., The Netherlands
Equivalent of 100'000 Euros
1% if redeemed within one year after subcription, 0% otherwise
20% (High Watermark)