Just the other month, we reported that our Multi-Strategy fund had ranked in July’s top 10 Barclay Hedge “Fund of Funds.” We should’ve known that we wouldn’t settle for 8th place – we were going for gold. In August AND September, our Multi-Strategy fund was the number one ranked fund among all Barclay Hedge “Fund of Funds” for the asset class Hedge Funds. In September, this fund had a 57.48% compound annual return, up nearly 10 percent from its August annual return of 48.68%. This same fund was ranked 2nd overall for September on the Sharpe ratio, meaning it has an extremely attractive risk-adjusted return.
To give these numbers some perspective, let’s consider the competition. Number two on the list of top 10 Fund of Funds awards, at an annual ROI of 44.41%, was Bostwick Compound LP, a hedge fund based on Madison Avenue in New York. The minimum investment for Bostwick Compound is $1 million dollars, with a gross asset value of $303 million. Number three on the top 10 list is Turbo Multi Strategy LLC, a feeder fund based out of Manakin-Sabot, Virginia, returned 38.17% annually. This feeder fund has a gross asset value of $135 million, with, again, a minimum investment of $1 million.
The thing about these two funds is that they’re clearly not intended for a large range of investors. They’re tailored for the elite. As a common investor seeking to diversify one’s portfolio through hedge fund investing, these funds are inaccessible. Plus, it is concerning that after a thorough Google search, it is still not apparent what types of assets make up these two funds.
Now let’s look at the Vinito Capital Management Multi-Strategy Fund. With a minimum investment of just $10,000, this fund is not placed on a pedestal, only to be accessed by the super rich. We believe investing should be accessible to everyone. We like to consider our offerings as elite funds for ANY type of investor – not just the elite.
And we’re not hiding what’s in our portfolio. The VCM Multi-Strategy Fund is a diversified fund that combines premium wine funds and vineyard funds. The exposure strategy is 50% vineyard funds, 40% fine wine funds, and 10% cash. With $30 million under management for this flagship fund, sure, we’re smaller than the other guys. But we’re just getting started. Our fund was born in 2019; Bostwick has been around since 2006, and Turbo since 2011. In only one year, we’ve managed to seed $30 million for this fund, and garner annual returns of 57%! On a minimum investment of $10k, that’s an annual return of $5700. Compound that for 10 years, and we’ll be blowing Bostwick and Turbo’s assets under management out of the water.
VCM MS FUND ROI September 2020
We’re so confident in the performance of this fund that we’ve given it a 10% hurdle rate, meaning that if it returns less than 10% annually, VCM will refund investors all performance fees. The proof is in the numbers. At a current return rate of 57% annually in the middle of a global pandemic, we have a cool buffer of 47% on our hurdle rate target.
That’s not all! VCM MS Fund also offers 10% first lost protection to all investors.
Annual returns aside, our Multi-Strategy fund continues to be one of our most sought after funds because of its balanced underlying assets. The investment strategy behind this fund is for long term risk-adjusted growth with dynamic capital allocation. This means that we seek a long term payday, and as the market changes, we rebalance the Multi-Strategy portfolio in order to hedge against market losses.
The Multi-Strategy fund was born because we received feedback from our cherished investors that they were looking for a fund that is more risk-averse and provides more stability over the long run. The world of alternative asset investing can be intimidating, but this asset class is growing and is becoming more reputable as part of a broader diversified portfolio strategy. “For those investors willing to broaden their horizons, wine is a legitimate and growing category within alternative investments,” writes InvestorPlace.
At Vinito Capital Management, we’re constantly working to increase the exposure and capital base of our award-winning funds. Our Multi-Strategy fund was recently listed on SumZero, the world’s largest community of investment professionals working with hedge funds, mutual funds, and private equity funds. This gives over 16,000 investment professionals access to our proprietary research on this fund, and offers the ability for us to connect with capital allocations managers. Since 2014, SumZero has facilitated the placement of over half a billion dollars in allocations. This exposure to leading industry professionals is good news for our Multi-Strategy fund, as it could generate a larger base of wealth backing your investments with Vinito Capital Management.
If you’re looking to get started with multi-strategy investing through our acclaimed funds, get in touch! We’re here, around the clock, to help you on your journey of fine wine investing.