Gulf Investment Corporation (GIC) today announced the outstanding performance of its flagship hedge fund-of-funds, the Alternative Strategies Fund (ASF). The strong returns achieved in 2006 were in the region of 10.8%, outperforming many other such funds currently available on the market and above the industry standard and started 2007 on a strong note by posting January and February performance of 2.65%.
GIC provided the seed capital in August 1999 to create a multi-strategy fund-of-funds for GCC investors in close collaboration with EACM Advisors LLC (EACM), a highly specialized boutique house of hedge fund-of-funds. The total asset worth of this fund has now grown to over $800 million, representing one of the largest investment funds of its kind in the Middle East. In August 2006, both companies joined forces to launch a more focused portfolio designed to take advantage of the opportunities in the event-driven sector.
“We are delighted to have all our efforts vindicated to offer our investors the best Return on Investment (ROI) possible in what is a very competitive market”, said Malek Issa Al-Ajeel, Senior Vice President & Head of Business Development at GIC. “Our ASF flagship fund-of-funds has proved its worth against industry benchmark results and we are working hard to further this performance.”
GIC have consistently demonstrated their astute management of hedge funds through long established track records of hedge fund-of-fund investments in the GCC market aimed at increasing the capital markets of this region. Where similar funds in the region have experienced a noticeable decline, GIC’s ASF has offered its clients the opportunity to diversify away from traditional GCC investments and thereby markedly reducing the level of risk and increasing profitability.
In a highly competitive market, hedge funds have continued to capitalize on their popularity with investors, principally due to significantly low volatility rates offering relatively good returns on investment with limited levels of risk. GIC have ensured that their ASF offering consists of a portfolio of hedge funds that is diversified across a broad mix of styles and strategies, with a unique return objective of LIBOR +3-5% (London Interbank Offered Rate) – which is among the most common of benchmark interest rate indexes used for specific maturities.