The intent is to realize a profit when an abnormal relationship returns to normal. Enhanced guarantees a return of 200 basis points over the 90 day T-bill. See the offering document in the Fund Information section for information regarding the guarantee. A multi-manager fund that offers investors access to a diversified group of hedge fund managers who primarily use market neutral, relative value trading strategies. The managers are selected and monitored by Coast Asset Management, itself a successful relative value arbitrage manager.
Leverage is applied to enhance the fund s potential returns.
The fund s goal is to provide high returns with low volatility in a portfolio of managers that are largely not correlated with each other, or with any market index. Coast has successfully invested in this asset class since 1996, and is a leading independent investor in the equity of these structures. We primarily invest in CDOs whose underlying collateral is senior, secured bank loans. Loans are predominantly floating rate instruments that have little or no interest rate risk. As for credit risk, they typically hold the highest position in a borrower s capital structure.