FOR IMMEDIATE RELEASE
Ferro Capital announces the launch of Hedge Fund Certificates Linked to its Successful Total Return Strategy
Frankfurt, May 4, 2006 — Fund-of-hedge funds specialist Ferro Capital LLC is pleased to announce the launch as of May 1 of the Ferro Total Return Hedge Index Certificates, which are linked to the firm’s successful Total Return Strategy. For the first time, Ferro Capital’s Total Return Strategy is available in the form of a certificate for German investors, through certificates issued by AAA-rated Rabobank. The Ferro Total Return Strategy invests across multiple hedge fund managers and multiple hedge fund strategies in an effort to deliver attractive long-term equity-like returns and lower volatility than major equity markets. However, the Ferro Total Return Strategy builds on core allocations to managers pursuing the hedge fund strategies included in Ferro Capital’s flagship market neutral Absolute Return Strategy by also allocating to certain managers pursuing more market-directional hedge fund strategies such as long-short equity and global macro. “We are very pleased to be able to make our Total Return Strategy available to a wider audience. Our range of multi-manager programs is designed to provide our clients with a choice of risk-return profiles, which may be used to help achieve individual portfolio diversification goals,” says Kevin Ferro, CEO of Ferro Capital. “Across the board during the first four months of 2006, our programs posted their best their returns ever, with the Ferro Absolute Return Index up an estimated +7.1% and the Ferro Blue Chips Strategy up an estimated +7.2%, and the recent environment has been particularly beneficial for our existing Total Return Strategy program, which was up an estimated +7.5% over the same period.” says Ferro. The Ferro Total Return Strategy allocates to a broad spectrum of hedge fund strategies, including relative value, long/short equity, event-driven, futures and global macro strategies. The Ferro Total Return Strategy also benefits from the access and capacity that the Ferro Capital team maintains with wellknown, established managers, including many hedge funds no longer available to new investors, as well as access to other specialist managers due to the reputation and network of the investment team.
The Total Return Strategy seeks to offer both diversification and return enhancement to an investor’s overall portfolio and consequently serves a different purpose with the investor’s asset mix. Whereas some view Ferro Capital’s Absolute Return Strategy as a fixed-income substitute, the Total Return Strategy is viewed as an equity substitute (having the added attraction of much lower volatility than the equity market itself). As of May 1, 2006, the Ferro Total Return Strategy represents allocations across 35 hedge funds and 7 broad strategy categories. Ferro Capital LLC Ferro Capital is an independent alternative investment management firm specializing in the development and management of funds-of-hedge funds for a select group of clients around the world. The Ferro Capital team has extensive experience in the hedge fund industry and has worked together for many years designing and managing highly successful funds-of-hedge funds and structured alternative investment products. With offices in New York and Frankfurt, Germany, Ferro Capital is the investment manager for a number of funds-of-hedge funds program that serve as the underlying for German certificates, including the firm’s flagship Absolute Return Strategy, which pursues a purely market neutral risk/return profile, and its Total Return Strategy. Kevin Ferro and members of the Ferro Capital team designed and launched the first hedge fund certificate in Germany in 2000, called “COMAS I”, when they were at former employer Commerzbank. Since this time, Ferro Capital has worked with Merrill Lynch International, Rabobank and others to make high quality fund-of-hedge funds programs available to German investors. Ferro Capital LLC is registered as an investment adviser under the U.S. Investment Advisers Act of 1940. ####
Contact:
Ferro Capital LLC +1 212 308 7500 Ferro Capital (Deutschland) GmbH +49 69 2108798 0 info@ferrocapital.com www.ferrocapital.com
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