Hunter Burton Capital, a global macro discretionary hedge fund founded by David Campbell and Tony Bradley, has launched a new FX Fund offering, dubbed the HBC Income Fund, helping extend its investing services to Australian clients, according to a Hunter Burton Capital statement.
The HBC Income Fund will help reinforce an existing offering by the hedge fund in the FX space, which will also be offered in tandem with the HBC Alpha Fund. The new iteration will be managed by Rob Lerpiniere, a recent addition to Hunter Burton’s team, who arrived from BNP Singapore. In addition, the HBC Income Fund will be looking to capture yearly returns of 8-10%, with an emphasis on low downside volatility.
The new HBC Income Fund offering is important for investors as it allows exposure to the FX market with mitigated downside volatility. Over the past two years alone, the FX industry has been jolted by multiple macro level events, including the Swiss National Bank decision, and referendum fallouts in Greece and the UK, with the latter voting to achieve a formal schism with the monetary union.
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HBC Income Fund is also slated to be run as a managed discretionary account (MDA) service, offering daily liquidity. The fund will also aim to target wholesale clients via Hunter Burton Capital as well as a pool of retail clients through an existing accord with Jade Capital Partners.
According to Hunter Burton Capital’s CEO David Campbell in a recent statement on the launch of the fund: “Following a fantastic fiscal year for the Alpha fund we realised there was demand for a low volatility fund that could provide consistent returns to investors.”
“In a ‘lower for longer’ yield environment, investors are searching for alternative sources of returns. We believe the Foreign Currency market can provide pure alpha returns, and given our experience and risk management controls we can limit downside volatility for the client. The Alpha fund will focus more on themes and trends and look and feel like a traditional hedge fund, whereas the income fund will look to provide consistent monthly returns, with minimal drawdowns,” he explained.