Key characteristics of Legends Fund
Legends Fund holds a portfolio of 10 hedge fund luminaries. The Fund strives to invest with only the world’s best hedge fund managers for each of the main hedge fund strategies. These managers have proven over a sustained period of time to be able to achieve strong, positive returns in different market environments. We expect our selection of managers to continue to outperform their peers and to achieve excellent long term risk-adjusted performance. On average, Theta Capital has been invested with these managers for more than ten years.
The underlying Legends have been selected from a large universe of over 10.000 hedge funds worldwide through a thorough due diligence process taking into account a large number of qualitative and quantitative aspects. The portfolio is constructed to achieve optimal diversification benefits by dividing its risk budget over different hedge fund strategies: Long-Short Equity, Event-Driven, Global Macro and Relative Value & Credit.
- Access to Exclusive Funds
Most of the hedge funds that Legends Fund invests in do not accept new investors and apply multi-million dollar minimums. - Focus on Risk Management
Each of the underlying hedge funds puts capital preservation first and employs rigorous risk management. - Diversified Exposure
Through its portfolio of hedge funds, Legends Fund has a well-diversified portfolio across strategies, trading styles, asset classes, geographies, instruments and market direction - Long and Short
By investing both long and short the underlying hedge funds are not dependent on market direction for achieving solid investment results.
- Daily Valuations & Liquidity
Legends Fund’s daily valuations and liquidity overcome a common operational hurdle for investing in hedge funds. - Transparency
Legends Fund offers full transparency as to the funds it invests with. Our monthly newsletters discuss individual funds’ contributions in detail. - Expertise
Theta Capital has been dedicated to hedge fund investing for over 15 years and has built a first class infrastructure and a deep industry network. - Alignment of Interests
Theta Capital’s principals and shareholders are among the largest investors in Legends Fund. The team’s sole interest is to achieve strong risk-adjusted returns for long-term investors.
Investors in Legends Fund are exposed to certain risk factors, the most important ones are mentioned below:
- Market Risks
The underlying hedge funds invest across liquid markets and will from time to time occur losses when these markets move against them. - External Managers
As Legends Fund’s capital is invested in other investment funds, the ultimate investment decisions are being made by the underlying, external managers over which we have limited control.
- Leverage
Legends Fund may invest in funds that can invest more than 100% of the fund’s capital using borrowed money which can amplify both gains and losses. - Liquidity Risk
The liquidity of the underlying funds in certain circumstances can be limited or suspended by the underlying managers.
For further product specific risks, we refer to the risk paragraph in the Legends Fund PPM.