Managed Accounts & Notional Funding
- Investor Control
Investor has 100% ownership of assets being managed - as opposed to ownership of a limited partnership interest in a pool of assets which could be subject to unknown claims. - Customized Management
Investment objectives, strategy and risk tolerance can be tailored to each account. Fees, instruments traded, drawdown limits, volatility, funding and use of leverage are negotiable. - Independent Safeguards
The fiduciary for assets is an independent counterparty selected by investor, approved by manager and subject to banking laws and regulations. - 100% Transparency
Account activity can be monitored on a daily basis, affording a detailed understanding of trade strategy and risk management while eliminating potential fraud, headline risk and hidden fees. - Independent Pricing
Counterparty accounting ensures unbiased pricing and eliminates operational risk. - Ease of Liquidity
Cash control by independent counterparty avoids liquidation delays, any misuse of funds and legal claims possible with other investment structures.
Hathersage's two distinct currency programs are each accessible through any of several managed account platforms offered by banks and other financial institutions. These fiduciaries stand between investors and managers as independent counterparties, performing professional due diligence and extending credit to investors. Managed accounts eliminate many of the risks associated with traditional hedge fund investing - see list of benefits at right.
Notional Funding
Currency spot and forward markets operate based upon credit extension. Unlike equity and bond trading, there is no cost for going long or short and no charge for leverage. As cash is not necessary to trade foreign exchange if an entity is credit worthy, notional funding leverages the cash available. As demonstrated in the diagram below, this results in a greater cash-on-cash return for a given nominal return.
Funding leverage, which is controlled by investors and negotiated with the counterparties extending credit, is not the same as trading leverage, which is controlled by managers. Hathersage reports nominal returns.
