Longreach CAI was established in 2017 in partnership with Longreach Alternatives. Longreach CAI (‘LCAI’) represents Creighton AI (‘CAI’) in the Australian marketplace.
CAI is a quantitative investment management firm that specialises in systematic global equity strategies including market-neutral, long-only and benchmark aware variations through the application of a proprietary machine learning algorithm.
CAI believes that scientific investing can better produce consistent, repeatable, risk-adjusted performance for investors.
CAI brings together a deeply experienced, global investment team providing investors the opportunity to invest into a best-in-class global equity investment solution. CAI specialises in providing global alpha solutions, delivered through combining a unique set of predictive factors and advanced machine learning resulting in highly differentiated quantitative solutions.
Nicholas Wherry is a Co-portfolio Manager at Creighton AI, supporting both equity market-neutral and long-only.
The Fund aims to provide investment returns in excess of the Reserve Bank of Australia (‘RBA’) cash rate over a rolling 3 year period after fees.
The Fund operates as a ‘fund-of-fund’ and gains its investment exposure through its investment in the Australian dollar (‘AUD’) share class of the Creighton AI Fund (Cayman) Ltd (referred to as the ‘Underlying Fund’).
The Underlying Fund aims to generate positive returns in all market environments by reducing the majority of market risk and focusing primarily on capital preservation and alpha generation.
The Underlying Fund utilises a global market neutral strategy through implementing a differentiated, global quantitative process which invests in listed global equities.
Inception Date
15 November 2019
Return Target
8-12% per annum
Volatility Target
8-12% per annum
Benchmark
RBA cash rate
Std. risk measure
4 - Medium risk of short term loss
Min Invest.
$20,000
Liquidity
Daily
Distribution (if any)
Paid annually as at 30 June
Buy/sell spread
Nil
Investments
The Underlying Fund can invest in any country that is a member of the MSCI ACWI Index. Long or short exposure can be achieved by holding these securities directly or via equity swaps. The Underlying Fund may use exchange-traded funds and both exchange-traded and over-the-counter equity derivatives including equity swaps and equity index products associated with the countries in which the Fund invests. Currency forward contracts and spot foreign exchange are used to manage currency exposures.
The Fund is classified as a hedge fund in accordance with the Australian Securities and Investments Commission, Regulatory Guide 240 ‘Hedge funds: Improving disclosure’. This classification is based on the fact that the Fund currently exhibits two or more characteristics of a hedge fund, being:
This information contains general information only and is not intended to represent specific investment or professional advice. The information does not take into account an individual’s personal financial circumstances, objectives or needs. Before making an investment decision, you should consider obtaining professional investment advice that takes into account your personal circumstances and should read the current target market determination and offer document before making an investment decision to acquire or to continue to hold units in the Fund.
Fees
Management fee: 1.35% p.a
Expense recovery: Estimated to be 0.15% p.a
Performance fee: 20% of excess performance above the benchmark and after fees, provided specific performance hurdles are met
Please get in touch. Our Business Development, Technical and Operational teams are located in Sydney, Australia.
