Enhanced Investment Strategies (EIS) is offering a new fund aimed at institutional investors. The PNM Capital Preservation Fund, managed by Sanjiv Bhatia, the firm's chief investment officer, plans to charge a 25% performance fee but no management fee.
The market neutral fund will invest in short-term government securities while also employing a proprietary options overlay strategy to generate surplus returns. EIS believes this fund will be especially appealing to pension plans, foundations and endowments that are looking for hedge funds with lower volatility. The overlay strategy is completely non-directional and relies on the relative mispricing in the options of