Fund of Hedge Funds
A New Vision in Alternative Investments
Atlas Fund Of Hedge Funds
This Brochure should be read in conjunction with and is qualiﬁed entirely
by reference to the information appearing in the Offering Memorandum of
the “Al-Markaz Alternative Investments Fund (“MAIF”) and its “ Appendix
A- Atlas Fund of Hedge Funds Class” (together, to be referred to as the
“Offering Memorandum”) dated September 2005.
Capitalized terms shall have the meanings assigned to them in the Offering
Atlas Fund of Hedge Funds (the “Fund”) is a new Class of Shares issued
by Al-Markaz Alternative Investment Fund (“MAIF”) which is an open
ended, multi-class mutual fund company, incorporated in 2001 as an
exempted company in the Cayman Islands.
The Fund is a multi-strategy fund, investing in a portfolio of single-
manager single-strategy hedge funds.
To seek absolute returns with low volatility by investing in a portfolio of
various single manager hedge funds employing various strategies.
The Investment Manager has appointed Union Bancaire Privee (“UBP”),
Geneva to be Investment Advisor of this Class of Shares.
UBP is one of Switzerland’s leading private banks. Headquartered in
Geneva, it employs over 1,100 people in oﬃces in Europe, the Americas,
Asia and the Middle East. It was created in 1990 as a result of the merger
of Companies de Banque et d’ Investissements (CBI) and TDB-American
UBP’s main focus is private and institutional asset management, oﬀering
its clients added value through excellent research, personalized service
and a complete, diversiﬁed range of traditional as well as alternative
assets products. Currently, they are ranked as the third largest hedge
fund investor in the world with more than US$ 18 billion invested in
various hedge fund products. As Investment Advisor, UBP will provide
to the Investment Manager investment advice to identify investment
opportunities suitable for this Class of Shares. As such UBP will not
be responsible for decision-making in respect to the Fund’s strategies,
allocation, policies or selection of sub-managers.
2 Atlas Fund of Hedge Funds A new vision in Alternative Investments
Investment Policy and Strategy
Kuwait Financial Centre S.A.K (the “Investment Manager”) will adopt
an active asset allocation approach leading to enhanced performance
with low volatility through (i) the selection of non-correlated managers
providing diversiﬁcation with respect to trading styles, asset classes and
geographical exposure; and (ii) the judicial use of tactical asset allocation
methodology by temporarily increasing or decreasing the allocation to
anyone of these sub-managers whenever deemed necessary.
The Fund’s Strategies will include:
● Long/Short Equity
● Emerging Markets
● Event Driven
● Global Macro
● Market Neutral
● Managed Futures
The Investment Manager will have full discretion to alter the above at
any time and communication to that eﬀect will be made to investors in
subsequent reports to them.
The Investment Manager will employ a thorough due diligence at both the
sub-managers’ companies level underlying funds’ level. The Investment
Manager will ensure that the sub-managers meet, both qualitatively
and quantitatively, the Funds’ parameters for performance and risks.
By conducting ongoing analysis of the sub-managers, the Investment
Manager is well-positioned to detect early on any number of potential
red ﬂags such as style drift, excessive or key personnel turnover, changes
in accounting practices, or any other signiﬁcant event. The Investment
Manager, with the assistance of the Investment Advisor, will monitor the
sub-managers continuously, while the ultimate responsibility for hiring
and terminating the sub-managers rests with the Investment Manager’s
investment committee. At the underlying funds’ level, the Investment
Manager will constantly analyze factors such as correlation between
managers, sector exposure, returns attribution and any other signiﬁcant
factors. It is the Investment Manager’s responsibility to identify where
proﬁts and losses are occurring and to ensure that risk guidelines are not
In addition, the Investment Manager follows a disciplined approach to
rebalance the portfolio on a quarterly basis with a view to maintain its
A new vision in Alternative Investments Atlas Fund of Hedge Funds 3
Fund Atlas Fund of Hedge Funds, a new Class
of Shares of MAIF
Incorporation Cayman Islands
Administrator Butterﬁeld Fund Services (Cayman) Limited,
Auditors Deloitte, Cayman Islands
Custodian Union Bancaire Privee, Geneva
Redemption Monthly with 45 days notice
Subscription fee 1% for US $ 500,000 to US $ 999,999
0.5% for US $ 1 Million and above.
Redemption Fee 1% if redeemed within one year of
the investment date
Management fee 0.75% p.a. of NAV, payable quarterly in arrears
Performance fee 10% over the average 3 months US$ Libor +2%
Investment Manager Kuwait Financial Centre, S.A.K.
This document does not constitute an offer to sell or a solicitation of an
offer to buy. Any such o er will be made only by means of the conﬁdential
Offering Memorandum, which must be read in conjunction with this
An investment in this Fund includes the risks inherent in any investment
in securities, as well as speciﬁc risks associated with limited liquidity, the
use of leverage, short sales, options, futures, derivative instruments, and
illiquid investments. In addition, the overall performance of the Fund is
dependent not only on the investment performance of individual hedge
fund managers, but also on the ability of the Investment Manager to
effectively select and allocate the Fund’s assets among the managers on
an ongoing basis.
The Offering Memorandum contains a more complete discussion of the
risks associated with an investment in this Class of Shares.
Investing in alternative investments entails a high degree of risks such as
outlined above and the investor is advised to read them carefully before
deciding to subscribe to this Fund.
4 Atlas Fund of Hedge Funds A new vision in Alternative Investments
Kuwait Financial Centre S.A.K.
Address: P.O.Box 23444, Safat 13095, kuwait
Tel: +965 224 8000 Fax: +965 242 5828