CHICAGO--(BUSINESS WIRE)--V2 Capital, an SEC-registered investment advisor, today announced the launch of the V2 Hedged Equity Fund, an open-ended single manager mutual fund utilizing the V2 Hedged Equity Strategy. The Fund began trading on October 31, 2014 with assets previously invested in V2’s Hedged Equity Strategy Limited Partnership Structure. The launch of the V2 Hedged Equity Fund with $240 million in assets makes it the largest hedged equity mutual fund launch of the year.
Victor Viner, Founder and Chief Investment Officer of V2 Capital said, “As hedge funds and mutual funds continue to converge, we are excited to be at the forefront of this trend. However, unlike many hedge fund managers that have launched modified versions of their core strategy in a liquid alternative, we are able to offer the identical strategy we have been managing for the past four years because of what and how we trade. Our new ’40 Act fund will implement the same strategy we previously offered in an LP structure, and separately managed accounts, but now our mutual fund investors will benefit from daily liquidity, increased transparency, lower investment minimums, and more regulatory oversight.”
The Fund’s objective is to seek to provide long term capital appreciation with reduced volatility. V2, as manager of the fund, will seek to combine a long concentrated portfolio of 30-50 U.S. equities with a short portfolio of customized S&P 500 index options. The equities represent the “best ideas” generated by the firm through fundamental bottoms-up research, while the short option positions are selected based on the portfolio’s net exposure and current volatility environment. The active management of the fund is designed to generate alpha, manage net exposure to a targeted range of 20%-80%, reduce volatility of returns, and provide some downside protection.
Consistent with other mutual funds, the V2 Hedged Equity Fund will provide daily pricing and daily liquidity. The Fund will offer two share classes: an Institutional Class (“I” class) that will be listed under the ticker VVHIX and an Investor Class (“N” class) listed under the ticker VVHEX, with minimum initial investment amounts of $100,000 and $1,000, respectively.
For more information about V2 Capital, please visit: http://www.v2capitalfunds.com/.
About V2 Capital
V2 Capital is an SEC-registered investment advisor focused on managing a hedged equity strategy designed to produce attractive risk-adjusted returns. The firm is led by Victor Viner, Co-Founder, former President, and CIO of Volaris Advisors, a multi-billion dollar equity options advisory firm that was acquired by Credit Suisse Group in 2003. Viner has more than 25 years of capital markets and trading experience. V2 Capital’s senior management team has been together since inception in 2004. The firm is based in Glenview, Illinois, a northern suburb of Chicago.
Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (847)201-3600 or visit our website at www.v2capitalfunds.com. Read the prospectus or summary prospectus carefully before investing.
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. This fund is allowed to purchase and write call options. Options on indices are derivatives and may be subject to greater fluctuations in value than an investment in the underlying securities. Purchasing and writing call options are highly specialized activities and entail greater than ordinary investment risks. As the Fund will only own a small portion of the stocks comprising the S&P 500, but will write uncovered call options on the entire Index, it is theoretically possible that the price of the securities in its short portfolio declines, while the Index as a whole increases in value. Larger, more established companies may be unable to respond quickly to new competitive challenges like changes in consumer tastes or innovative smaller competitors. Also, large-cap companies are sometimes unable to attain the high growth rates of successful, smaller companies, especially during extended periods of economic expansion.
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S&P 500 Index (“S&P 500”): is a market-value weighted index representing the performance of 500 widely held, publicly traded large capitalization stocks.
Short Position: The sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value. In the context of options, it is the sale (also known as “writing”) of an options contract.
Long Position: The buying of a security such as a stock, commodity or currency, with the expectation that the asset will rise in value. In the context of options, the buying of an options contract.
Alpha: refers to the abnormal rate of return on a security or portfolio in excess of what would be predicted by an equilibrium model like the capital asset pricing model (CAPM).