New fund to profit from volatility

Alternative investment company Evolvence Capital has launched the first in a series of structured products targeting the GCC equity market.

The US$150m Evolvence Capital Semi-Exotic Equity Derivatives (ECSEED) fund will invest in local blue chips with high potential through risk management and yield enhancement processes that will be implemented using a combination of basic derivatives like calls, puts futures and swaps on equity and interest rates.

Focusing the fund on equity derivatives means that investors can benefit from the high levels of volatility in the local markets, which is twice that of developed markets. The instruments can be structured with risk management features such as capital protection and structures to boost positive performances.

Speaking at the launch, Khaled Al Muhairy, CEO, Evolvence Capital, said: "We believe that regular diversified equity funds, like the ECSEED fund, form the core holding of any portfolio. The ECSEED fund is a more aggressive fund that will strive to add higher alpha to the portfolio over the long-term through bottom up stock picking and will be an interesting style diversifier for investors."

Evolvence Capital is based in Dubai and currently has more than $1 billion of assets under management in the Gulf, India and the US.

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