This article was first published by Fundview, Tim Habicht on August 30th, 2023 in German language.
Bremen-based fund boutique Intalcon is planning a UCITS version of its offshore hedge fund Intalcon Alpha for Impact Global. This is what Fundview has learned. The hedge fund has been in existence since 2011 and achieved a positive performance of 37 percent in the extremely difficult past year. Intalcon founder and CEO Klaus Wobbe (pictured right) explains in response to an inquiry from Fundview: "After the Family & Friends fund has delivered a very successful track record over more than ten years, Intalcon has been increasingly asked whether this performance could also be offered as a UCITS fund. For this reason, Intalcon and Agathon Capital are planning to launch the UCITS fund."
However, as UCITS funds are known to have a different framework, Wobbe will have to forgo some trading instruments, such as commodity futures. "We will also be much more cautious in terms of leverage, so absolute performance will not be quite as high. In risk-adjusted terms, however, we are again aiming for a very attractive risk-reward ratio for the UCITS fund, with a Sharpe ratio of over 1, and we also expect an average five-year return in the double-digit range," explains Wobbe.
The investment universe of the new fund is global equities with a focus on U.S. large caps, as well as liquid equity index futures. Liquid interest rate futures and money market funds are also used. In addition, Wobbe allocates precious metals such as gold and silver as well as futures on liquid currencies. Investment decisions for buying and selling, position sizing and risk management are made systematically and are based on algorithms that have been tested over many years.