CHICAGO, IL — (Marketwire) — 01/10/12 — AlphaMetrix LLC, founder and operator of the AlphaMetrix Global Marketplace (AGM), a U.S. leading edge technology-based hedge fund platform, is pleased to announce that Potomac Portfolios LLC (Potomac) has listed its Potomac Select Multi-Manager Futures Fund (Potomac Select) as a Transparent Fund on the AGM Platform.
As a Transparent Fund, Potomac Select will retain its existing fund structure and service providers while also offering current and future investors 24-hour in-depth risk monitoring, state-of-the-art reporting, customized real-time transparency, and thorough due diligence through AlphaMetrix and AlphaMetrix360, Potomac-s administrator. Potomac chooses underlying managers for their dissimilar approach to trading international cash and derivatives markets for currencies, interest rates, stock indices, agricultural and energy products, and precious and base metals (Futures).
“We are excited to bring to the AlphaMetrix Global Marketplace a product that is truly differentiated in managed futures,” said Thomas Lott, Potomac-s President. In contrast to most multi-advisor Futures funds, Potomac heavily concentrates its portfolio among managers that employ widely varying strategies, including discretionary and fundamentally-based approaches, that bear low correlation to each other, to medium and long term trend-following in managed futures, and to traditional and hedge fund investing.
“With returns lagging and risks mounting in traditional investing, institutional flows have recently doubled assets under management in managed futures to $320 billion,” said Lott, “with allocations heavily weighted towards super-sized trend-following strategies and large multi-manager funds that frequently target the same or similar trend-following managers. At Potomac, we concentrate on managers that are less burdened by size, that incorporate greater discretion in their trading strategies, that operate in more varied and shorter time frames, and that exploit more unique phenomena in less crowded spaces,” he said. “Diversity is the key to containing risk,” said Lott, “and there is plenty of it in our industry that is being largely overlooked.”
“We are delighted to have Potomac join the AlphaMetrix Global Marketplace,” said Mikus Kins, AlphaMetrix Head of Business Development. “We see Potomac bridging a gap in managed futures with a product that complements well our own strategy of providing investors with a wide range of hedge fund selections,” he said. “Potomac will broaden our managed futures offering on AGM with a product that incorporates the same high standards for liquidity, transparency, due diligence, risk and institutional infrastructure that institutional investors demand.”
Potomac Select is a multi-manager private investment fund, organized as a Delaware “multi-series” limited liability company that provides an actively-managed, highly diversified, single source solution to managed futures investing via AlphaMetrix. Potomac allocates exclusively to managers that are approved for investment both by Potomac and AlphaMetrix and that are willing to provide high levels of liquidity, transparency, and reporting. Potomac is also able to design and manage custom and privately-labeled products for institutional investors seeking differentiated approaches to managed futures investing.
The performance of Potomac Select is intended to be uncorrelated to the performance of traditional multi-manager funds in managed futures and with the performance of equity, fixed income, real estate, and hedge fund investments.
Potomac-s principals have been providing Futures products to individuals, family offices, hedge funds, and institutions since 1997, following successful careers at Goldman Sachs, Blyth & Co, the International Finance Corporation (World Bank Group), and in public and private equity.
AlphaMetrix is an electronic marketplace for secure and transparent investing in private investments such as Hedge Funds, Commodity Trading Advisors and Private Equity Funds. The Chicago-based firm is the largest independent platform for private placement investing in the world. The firm, via the AlphaMetrix Global Marketplace, services over $6.3 billion in assets* and provides extensive due diligence, real-time transparency, 24-hour risk management and Point-Click-Invest capabilities. The Marketplace further serves to electronically connect over 60,000 industry participants.
AlphaMetrix has received many awards and recognitions from the industry as well as from the media. Among its accolades, the firm was listed in the 2010 Inc. 500 as the 109th fastest growing company in the United States and, in 2011 by Crain-s Chicago Business, as the fastest growing company (public or private) in Chicago over the preceding five years.
AlphaMetrix currently employs over 100 industry professionals globally with offices located in Chicago, New York, Columbus, Europe and the Cayman Islands.
If you-d like more information on Potomac Select LLC, please contact AlphaMetrix Client Relations at or (312) 267-8425; or contact Potomac Portfolios, LLC at or (202) 237-8878.
*As of September 2011
Alternative investment products, including hedge funds and managed futures, involve a high degree of risk. Alternative investment products can be volatile. An investor could lose all or a substantial amount of his or her investment. Alternative investment products often execute a substantial portion of their trades on non-US exchanges. Investing in non-U.S. markets may entail risks that differ from those associated with investments in U.S. markets.
AlphaMetrix
Media Contacts:
Geoff Marcus
212-750-8295
Derya Elmali
212-750-8294
Potomac Portfolios
Thomas Lott
202-237-8878