London-based Falcon Investment Management added a strategy from Shinringi Capital and the Lumos Fund to its multi-manager platform recently.
Falcon’s $800 million platform allocated $10 million to Shinringi Capital as part of its first loss program, and according to Falcon CEO Benny Menashe, the firm plans to support new managers in the coming months.
“Shinringi’s strategy will focus on derivatives trading on the Pacific exchange, specifically to capitalize on increased cross asset co-relations during volatile markets.” said Menashe. “Our infrastructure continues to gain traction specially amongst managers with derivatives and market neutral strategies. Falcon launched its first loss program in the UK and we have started to see increased demand across Europe and Asia in recent months. We understand the intricacies of the first loss investment structure and can support managers who are in the market for early capital via our funding program.”
The Falcon platform is tailored to create independent and specialized portfolios under its Cayman SPC fund structure, while delivering institutional level infrastructure and established Tier One relationships.
Falcon’s first loss capital infrastructure aims to align interests of both investors and portfolio managers. The firm allocates a pool of capital into SMA structures in partnership with select portfolio managers. Those managers benefit from Falcon’s operational and risk management framework, while investors attain alpha combined with ongoing risk monitoring and independent operational oversight.
Earlier in the year, Falcon selected the $300 million Lumos Fund, a quantitative oriented fund. Lumos employs a 4Cast strategy that is a mid-frequency intraday momentum strategy trading futures on leading indices in the U.S., UK, Europe and Asia. The trades are executed via a fully automated proprietary system and the strategy was build by quant technology development company FinYX.
“Falcon Investment Management provides the exacting approach to investment management we were looking for to host our fund,” said Roey Kosover, managing director of Lumos Fund. “Technologically advanced and with a great track record, we are confident the relationship between Lumos and Falcon will be a successful one for investment managers and investors alike.”
Menashe said, “The 4Cast is an intraday strategy brings a new dynamic to our platform which expands our current offering, providing more choice for investors and investment managers alike. The Lumos Fund brings performance excellence and an opportunity for Falcon to continue to engage with new clients as well as increasing the benefit to our existing investment managers.”