PMV Capital offers private investment funds designed to hedge market risk.
Perhaps the best-known market anomaly is momentum, or persistency in prices. This simply means that assets which have shown positive performance are more likely to continue rising, while assets that have shown negative performance are more likely to continue falling.
By combining asset class momentum trends with traditional portfolio construction techniques, the PMV Capital Fund is able to diversify away any one market’s risk. This is what makes it such a great alternative investment, and ‘hedge’ against other assets in your portfolio.
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Existence of Momentum
Momentum is arguably the most documented of market anomalies and has been observed for hundreds of years. Since the price of each asset class is driven by different factors, it likely that there is positive momentum in at least one asset class, despite market conditions, at any given time.
Asset Class Diversification
When identifying momentum trends, our process seeks a specific relationship: assets that are both trending higher and with low or negative correlation. This unique relationship provides the potential to lower risk without sacrificing returns.
We believe an investment process should be well defined. This allows for the testing of investment theses and repeatable results. Simulated investment returns from Verified Hypothetical Model. PMV Capital Fund V.S S&P 500
(Net, Since Inception)
PMV Capital Fund:
The Verified Hypothetical Model (“VHM”) is provided for illustrative purposes only and should not be construed or relied upon as actual performance and do not represent returns during a time when actual client funds were invested. The VHM does not represent actual trading and may not reflect the impact that material economic and market factors might have had. Net fees are calculated on a monthly basis and assume a fee structure of 2% management fee OR 30% performance incentive allocation, each deducted monthly, subject to a hurdle rate and high-water mark. Any changes to these fee assumptions, negotiated or otherwise, will have a material impact on the investor’s realized returns. Performance is reflected net of brokerage commissions. Returns presented do not include the deductions of administrative fees, including fees charged by custodians, third-party administrators, or auditors.