Hydra Cross Asset Fund
Executive Summary
Hydra Cross Asset Fund was borne out of its principal, Philip Hahn's 20 years of research and experience on Wall Street. After successfully trading for his own account, he decided to establish the fund for outside investors interested in the Fund's unique risk/reward profile.
The Fund's founding principle is that there is a more intelligent way to hedge risk than through derivatives of the asset in question. Circa 90% of investor returns in the hedge fund space may be considered as short-volatility trades; no matter what the asset, if it generally provides returns at an above-treasury rate over the long term, it will suffer when there are spikes in volatility due to economic news or geopolitical events. This is especially true with so-called correlation breakdowns, when asset correlations rise to near 100% during market crises. These happen quite often and the supposed benefits of portfolio diversification and alternative asset investment disappear as positions decline in tandem. These can even lead to liquidity crises with positions pledged as collateral for other declining assets.
Traditional hedging activity, such as programmatic put purchasing and Vix futures + options, are an expensive drag on performance. Derived from two decades' experience with multiple Wall Street crises, the principal wrote software analyzing thousands of investment vehicles and derivatives to see if hedging could be conducted without the heavy cost and difficulty of monetization of conventional crash protection. Hydra Cross Asset Fund was born, with the objective of providing net returns at or exceeding the S&P 500 over the long term, while mitigating sharp portfolio declines during risk-off events.
Its wide mandate allows Hydra Cross Asset Fund to engage in currency, commodity and bond positions both long and short and in associated derivatives, in order to provide such protection in a cost-effective manner. Live trading of the strategy proved successful.
As the Fund engages primarily in Futures and other derivatives, a large, unencumbered cash base allows for further profit-making opportunities for investors. The fund engages in box spreads and other low-risk trades to achieve returns better than the risk-free rate, and it also engages in liquid crypto exchange arbitrage as a further use of the cash funds without taking directional risk in the large but highly fragmented centralized and decentralized financial universe.
The Fund is committed to investor liquidity requirements and offers monthly reporting with no lock-up periods.
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The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.
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