Investing in Hedge Fund via SIPP

GoodWork

Hi, does anyone have any suggestions for a U.K SIPP provider that allows investing into Hedge Funds please ?

Prism

Did you have a particular hedge fund in mind as most of them cannot be accessed by retail investors at all, either inside a SIPP or not? Hedge funds are unregulated private funds and therefore not suitable for a SIPP. The only exception I know of in the UK is Pershing Square which is publicly traded.

MoJoeGo

As well as the issue of suitability, most hedge funds will have a very high threshold for minimum investment, often in the millions. Interested to know what you are trying to achieve here OP...?

GoodWork

Thanks for your answers. I was not sure if allowed to mention the name. I'm looking at Mulvaney Global Markets Fund. Minimum investment is $100K. I own shares and feel bad times are ahead. I don't want any bonds and feel investing in diversified futures could give protection over the next several years. 

Linton

Gary_Miles said:

Thanks for your answers. I was not sure if allowed to mention the name. I'm looking at Mulvaney Global Markets Fund. Minimum investment is $100K. I own shares and feel bad times are ahead. I don't want any bonds and feel investing in diversified futures could give protection over the next several years. 

Having searched Google I can find virtually nothing about this fund, its performance, its size or how you invest in it. The one bit of clear information is that it is registered in Bermuda and submits SEC (US) filings, but managed from the UK by Mulvaney Capital Management (MCM) who have FCA authority to manage funds.  the MCM website says very little. Do you have any info?

Are you sure this is an appropriate investrment in which a small UK private investor should place a significant % of their hard-earned? How did you hear about it?

GoodWork

Hi, thanks for checking. I was just researching various funds and came across it. I am a fan of 'Trend following' which is a little out of fashion these days. I think out of fashion because returns can be erratic. For example these funds will make about 10-15 % per year long term, but individual years can be - 30 % or +100 %. They tend to do well when Stock markets and risk assets get sold. There are several podcasts which discuss this philosophy. Top Traders unplugged is my favourite or Michael Covel's  Trend following podcast.

MoJoeGo

Linton said:

Gary_Miles said:

Thanks for your answers. I was not sure if allowed to mention the name. I'm looking at Mulvaney Global Markets Fund. Minimum investment is $100K. I own shares and feel bad times are ahead. I don't want any bonds and feel investing in diversified futures could give protection over the next several years. 

Having searched Google I can find virtually nothing about this fund, its performance, its size or how you invest in it. The one bit of clear information is that it is registered in Bermuda and submits SEC (US) filings, but managed from the UK by Mulvaney Capital Management (MCM) who have FCA authority to manage funds.  the MCM website says very little. Do you have any info?

Are you sure this is an appropriate investrment in which a small UK private investor should place a significant % of their hard-earned? How did you hear about it?

I've not dealt with MCM (personally or in my professional capacity...) but the set up doesn't give rise to immediate concerns - fairly standard, UK/US regulated manager, offshore based funds (which allow much more trading flexibility), very basic website due to not marketing to retail investors. 

If I were to be investing here, I'd be wanting to do a lot more due diligence on their investment strategy, key individuals, assets under management, NAVs and the like (not to mention verifying their regulatory/registration status). 

But that's really all moot as I don't see a way that the OP could legitimately invest without the manager being in breach of their regulatory obligations. Unless of course they think they would qualify as a Professional (ie sophisticated) investor?

GoodWork

Thanks for your information. I shall carry out some further checks. They are happy I qualify as a professional investor, due to my job in finance. Once they were happy I qualified as a professional investor they provided more information, performance, NAVs and AUM, basic strategy. I have contacted several SIPP providers and hopefully they can help. Thanks again to all that have replied. I appreciate your time/help.

Alexland

Gary_Miles said:

They are happy I qualify as a professional investor, due to my job in finance.

I have never heard of this company to determine if their offer to you is legitimate but am concerned you are staying away from the mainstream perhaps into high risk investments that might suffer total loss.
There are plenty of well accepted retail investment products that provide an acceptable balance of risk and long term returns so don't understand why you are seriously considering this option?

MoJoeGo

I suppose it depends what the OPs job in finance actually involves. I've worked in investment banking for 25 years but wouldn't consider myself a professional investor - although I have colleagues that definitely are...

The fact that the OP is asking these questions on this forum does however make me wonder if he really is in that same category...

GoodWork

Thanks Alexland for your comments. Could you please provide a few retail investment products for me to consider if possible? My concern is most retail products all move down together at the same time when bad news appears. A managed futures investment should make more money during bad times and make a small profit/loss during the good times. I feel that would complement a long shares/risk portfolio well.