Investment Strategy

Merrant´s award winning Market Neutral Fund is constructed to generate high risk adjusted return with low downside risk. The Fund is ideal for investors whom seek to add high risk adjusted return and pure Alpha without increasing the risk in their existing portfolios.

  • Targets capital appreciation of +5% per annum with high consistency, low overall volatility (1,5-3%) and low downside risk.
  • Invests in 5-15 highly liquid, valid and repeatable strategies/funds with proven track record in volatile and changing markets conditions.
  • Underlying strategies/funds in Merrant Alpha Select Fund are market neutral, mutually uncorrelated and uncorrelated to major equity and bonds markets.
  • Pre-requisites for underlying funds; monthly redemption, no redemption fee, no side-pocket, no look-up, weekly performance updates, high transparency, liquid positions that can be liquidated in short time period, well renowned custodian, administrator and auditor, experienced fund managers and solid infrastructure.
  • Merrant Alpha Select has a proven trackrecord and been recognised by industry awards.

The purpose of our investment strategy is to generate positive returns throughout the economic cycle while preserving capital and maintaining low to negative correlation to major equity and bonds indexes. This is achived by composing market neutral portfolios of underlying hedge funds strategies that are “true” market neutral, mutually uncorrelated and uncorrelated to major equity and bonds markets.

Merrants market neutral fund-of-funds strategy inherents low downside risk, high consistency and positive skewness of the returns. We only invest in highly liquid, repeatable and valid strategies that have proven track record in volatile and changing markets conditions.

It is crucial for us to offer our invesors transparancy and good liquidity. Thus we have rigid guidelines for a fund to qualify as an potenital investment in Merrants portiolios; Pre-requisites for underlying funds – monthly redemption, no redemption fee, no gating, no look-up, weekly performance updates, high transparency, liquid positions that can be liquidated in short time period, well renowned custodian, administrator and auditor, experienced fund managers and solid infrastructure.