Against the backdrop of recurring financial volatility and frequent geo-political turbulence, investors may experience difficulty at some stage when it comes to navigating the financial labyrinth and yielding sustainable long-term return on investment.
But a once-in-a-lifetime opportunity to invest in a world-class hedge fund through a local feeder fund is currently available in Thailand, where long-term sustainable returns are ensured through expert fund management armed with big data analysis and top intellectual firepower.
ASP-LEGACY-UI Fund, managed by Asset Plus Fund Management Co. Ltd, is the fund in the spotlight. Established in 2002 and wholly-owned by SET-listed Asia Plus Group Holdings Plc, Asset Plus Fund Management has a team of professionals with expertise in mutual fund and private fund management, along with a vision to become a boutique investment management firm that offers clients customised investment solutions.
The ASP-LEGACY-UI Fund operates under four main principles: having a world-class performance, creating investment opportunities to present the best risk-adjusted return, yielding benefits from investment diversification, and providing special investment privileges in top-notch hedge funds.
Offered only for institutional investors and accredited high net worth investors, the ASP- LEGACY-UI Fund, which is classified as a feeder fund, is managed by Renaissance Technologies LLC, a New York-based legendary hedge fund founded by billionaire hedge fund manager and mathematician Jim Simons.
“Jim is the smartest billionaire in the USA,”says Khomsan Phalanusondhi, executive director and chief marketing and product officer for Asset Plus. “His background is in mathematics – he has a PhD from the University of California, Berkeley – and he was also a code breaker with the National Security Agency. He’s 86 now, and retired from management, but he’s still the chairman.”
The ASP-LEGACY-UI Fund provides an exclusive opportunity to invest in Renaissance Institutional Equities Fund (RIEF). Designed to deliver a better
Sharpe ratio than capitalisation-weighted portfolios through a combination of higher return and lower risk, RIEF has generated an average annualised return of 11.34% with assets under management valued at $29.3 billion and approximately 60% of the volatility rate of the S&P 500 Index since its inception in August, 2005. RIEF’s performance in 2018 was a testament of Renaissance Technologies LLC’s successful feat as the equities fund yielded a 8.52% return, higher than -4.39% generated by the S&P 500 Index and the MSCI All Country Index’s 8.97%. Moreover, RIEF managed to register annualised double-digit returns in eight years from a duration spanning between 2006 and 2018.
In a nutshell, Renaissance Technologies LLC’s reputation as a distinguished quantitative hedge fund derives from its secretive and wildly profitable Medallion Fund, which has one of the best records in investing history with annualised return of almost 40% over the past 30 years.
The firm uses quantitative trading, where staff tap data in its petabyte-scale data warehouse to assess statistical probabilities for the direction of securities prices in any given market. Staff attribute the breadth of data on events peripheral to financial and economic phenomena that Renaissance Technologies LLC takes into account, and the firm’s ability to manipulate amounts of data by deploying scalable technological architectures for computation and execution, according to the Wall Street Journal.
Compared to Berkshire Hathaway’s Warren Buffet, another legendary investment industry figure, Jim Simon’s results with Medallion are ahead by leaps and bounds. “You can see the average annual returns after fees for Warren Buffet is here, at 21%,” says Khomsan, pointing to a coloured infographic that also shows the Medallion Fund at 39%. “But they have a different approach.Warren Buffet is value investing.They invest in the company.”
Khomsan goes on to explain Renaissance Technologies’ much more mathematical “long- short” strategy. “Normally, in an equity fund, if they think a stock is going up, they buy it. But here they want to benefit both from the stock that’s going up and the stock that’s going down. By analysing the
data, they can identify when a stock is going up and they go long, and when a stock is going down and they go short. That’s why this fund can profit in any market condition. They weathered the financial crisis of 2008 down only 16%, compared to the S&P 500 which was down around 40%.”
“They have very strong infrastructure. They invest a lot to buy data and they have impressive computer power with strong bandwidth connectivity. They collect about 15 terabytes of data per day, and they have this kind of data backed from the last 37 years so they can simulate all the trading strategies using a quantitative and mathematical approach. And they have robot AI that never gets tired. From the idea to the trade it takes only about one second.
“Renaissance Technologies is wholly owned by its 310 employees, half of whom are PhD graduates from Ivy League schools,” Khomsan goes on to say. “These are notWall Street guys.They take a different approach. Wall Street guys just talk about company outlook, but here they use a lot of big data and superpower computers that can run and simulate all the investment strategies all the time.”
For ASP-LEGACY-UI, the fund generated a 3.46% return between July and October 2019. The fund’s project value is worth 1.6 billion Baht and 900 million Baht worth of investment units have already been purchased, with only another 700 million Baht left. Initial investment amount for the fund starts at $10 million.
“We’re the only ones who can offer this fund to clients inThailand,” Khomsan explains, underscoring the exclusivity of this opportunity. “It’s been closed to new investors for a long time.”
ASP-LEGACY-UI Fund is not limited by investment risks unlike other mutual funds; therefore, it is only suitable for investors who can accept high-risk losses. Any forward-looking statements, results, or valuations are based upon current assumptions, may be simplified and may depend upon events outside Asset Plus Fund Management’s control.
For more information contact customer care Tel: +66(0)2 672 1111 / assetfund.co.th