GEIST SP (Global Equity InveSTment) Fund
A perfect solution for an individual investor to enter global equity market
The Fund’s Objective
In the long-term, to deliver a better relative return (the return in relation to a unit of risk) than the return delivered by the S&P 500*
In the short-term, during the periods of falling or stagnating markets, to deliver better dynamics than the performance of the S&P 500
*while allowing for some lagging in periods of rapid growth and excessive valuations
GEIST SP.
Basic Parameters
Basic Parameters
Types of Investors
Eligible investors, other than US persons, politicians and high-ranking officials, who have passed KYC and AML procedures.
Investment options
Directly from a private person or a company, through a brokerage account in a bank or broker, through a holding account in an insurance company.
The type of the fund
Open
Country of registration
Cayman Islands
Start of operations
July 2020
Base currency
USD, EUR
Liquidity
Monthly
Reporting NAV
Monthly
Commission on entry/exit
NA (Not applicable)
Minimum subscription value
$100 000, €100 000
Dividend distribution
NA (Not applicable)
Administrator
Apex Fund Services
Prime-broker
EXANTE
Auditor
Deloitte&Touche
Bank
The Northern Trust
Dynamics of Net Asset Value per share
*NAV per share for only two classes is demonstrated as an example. The rest of the classes are not included in the graph in order to simplify its interpretation.
Since its launch (for 11 month), the fund has demonstrated the following results:
- USD I share class: net return of 10.6% per annum for the investor (with a volatility of 5.4% and Sharpe ratio of 1.8). Net return for 5 month of 2021 calculated 5.2%.
- USD II share class: net return for the investor is 12.5% per annum (with the volatility of 3.8% and Sharpe ratio of 3.6). Net return for 5 month of 2021 calculated 5.6%
- USD III share class: net return for the investor is 12.9% per annum (with the volatility of 5.9% and Sharpe ratio of 2). Net return for 5 month of 2021 calculated 6.3%.
*USD II share class was launched 01.12.2020
Fees & Bloomberg ISIN
| Class | Minimum investment |
Management Fee |
Performance Fee |
Bloomberg ISIN |
|---|---|---|---|---|
| USD I | $100 000 | 1,25% | 15% of net NAV appreciation |
KYG1R84N1001 |
| USD II | $1 000 000 | 1% | 10% of net NAV appreciation |
KYG1R84N1266 |
| USD III | $100 000 | 1% | 50% of net NAV appreciation above S&P 500 TR |
KYG1R84N1423 |
| EUR I | €100 000 | 1,25% | 15% of net NAV appreciation |
KYG1R84N1183 |
| EUR II | €1 000 000 | 1% | 10% of net NAV appreciation |
KYG1R84N1340 |
Investment Declaration
Instruments
Equity securities
Under normal circumstances, the SP will invest primarily but not exclusively in equity securities of medium and large capitalization companies from the developed countries.
Wherein:
- the Investment Manager defines as developed those countries whose GDP per capita is at least USD30 thousand as calculated by International Monetary Fund;
- a company is considered to be a company from a developed country if it is organized under the laws of such a country or maintains its principal place of business in such a country or its shares are traded in such a country;
- the Investment Manager defines medium and large capitalization companies as companies that at the time of purchase have market capitalization of at least USD200 million.
Equity securities include primarily common stocks, as well as preferred stocks, convertible securities (such as convertible preferred stock or convertible debt securities), derivatives (such as options and warrants), and equity of real estate investment trusts (“REITs”).
Fixed-income securities
The Segregated Portfolio may also invest up to 20% of its assets in non-equity securities, such as fixed income securities, for temporary employment of spare cash, hedging purposes or if the Investment Manager believes that a company’s fixed income securities offer more potential for long-term total return with less risk than an investment in its equity securities.
Cash and cash equivalents
Although the Segregated Portfolio normally holds a portfolio of equity and fixed-income securities, the Segregated Portfolio is not required to be fully invested in such securities and may maintain a significant portion of its total assets in cash and securities generally considered to be cash equivalents. There is no limit on cash and cash equivalents as percentage of Total Assets of the SP.
The proportion of the Segregated Portfolio’s assets invested in each type of asset class will vary from time to time based upon the Investment Manager’s assessment of general market and economic conditions.
Derivatives
The Investment Manager is allowed to make trades with derivatives (stock put-options and call-options) in case the stock is considered to be of high quality and the Manager is ready to include it into the portfolio in case of an execution. This type of instrument will be used when the securities are overvalued or expensive.
Diversification
The Investment Manager composes a focused portfolio of 16 to 30 securities as it believes that 16 securities are enough to eliminate nearly all specific (non-market) investment risk, while further diversification may significantly reduce the quality of a portfolio without contributing to risk reduction. At the same time the Investment Manager attempts to achieve a diversification of the Segregated Portfolio among selected market sectors, industries and countries. However, there may be times when Segregated Portfolio may hold a substantial portion of its assets in one particular sector at a given time.
The Segregated Portfolio’s is managed based on the best principles of value investing. The Investment Manager invests in stocks that it considers to be undervalued compared to its estimate of their intrinsic value.
Positions
The Segregated Portfolio is allowed to sell securities short but will do so in exceptional cases, as short sales create very high-risk exposure compared to creation of long positions. Generally, the Investment Manager adopts buy and hold strategy and expects a turnover of a portfolio to be low; however, nothing in this Offering Supplement or in other documents precludes the Investment Manager from engaging from time to time in more frequent trading, whenever the Investment Manager will consider that appropriate and in the best interests of the Shareholders. The Investment Manager typically will sell a stock when it believes that its price is unlikely to go higher, its fundamental factors have changed, its share in a portfolio exceeded a maximum allocation level, or other investments offer better opportunities.