About EdgeFund

The fully automated strategy of EdgeFund is applied to classic futures and options. The strategy is volatility-driven, focusing on the sale of options on short and medium-term horizons. To minimize market risk, positions are delta-hedged as part of strict risk management. The core of the strategy is based on an advanced options volatility model that generates income from selling options and collecting premiums. Positions are hedged using futures. Due to good liquidity and high scalability during trading sessions, the S&P 500 is the primary market in which the strategy is active.

In addition, the fund focuses on various arbitrage methods, such as interest rate arbitrage and FX arbitrage. Through these strategies, we exploit market discrepancies and add additional returns to the strategy.

The minimum amount for participation in this fund is €100,000.

Proud of our results

24%

Annual Target

99.51%

Total cumulative result

2%

Monthly target

4.97%

Maximal Drawdown

Participate

Risk

Liquidity Risk

The inability to easily exit a position due to the lack of liquidity of the investment instrument being used.

Measures: Trading in the most liquid markets (S&P 500). Trading across various exchanges and brokers.
Execution Risk

The risk of your order not being fully or not executed at all due to a technical issue.

Measures: Automated risk management scenarios, 24/7 human monitoring, backups, testing periods.
Counterparty Risk

The probability that a particular exchange will not be able to make the required payments for their debt obligations.

Measures: Diversification across the largest and safest exchanges.

Our strategy

Within the delta-neutral option strategy within EdgeFund, we employ one strategy consisting of three different sub-strategies. This allows the strategy to be applied in both rising and falling markets. Below, you’ll find more information about these strategies.

Volatility Risk Premium

EdgeFund aims to exploit the volatility risk premium in globally developed equity and bond markets by writing call and put options to buyers seeking financial insurance in exchange for a premium. To implement this strategy, EdgeFund will sell put and call options with various strike prices and expiration dates on various equity and bond reference assets, including indices, in globally developed markets.

Interest Rate Arbitrage

Market-neutral interest rate arbitrage is an investment strategy aimed at generating profit by exploiting price inefficiencies between interest rates, while simultaneously minimizing exposure to overall market movements. The goal is to create a position that is not overly influenced by broader market trends, hence the term “market-neutral.”

Features

EdgeFund is an open-end mutual fund.

Investment Strategy: Volatility Premium (delta-neutral) on the S&P500, interest rate arbitrage, and FX arbitrage.

Manager: Edge Capital Management B.V.

Custodian: Edge Capital EdgeFund Custody Foundation

Bank: Northern Trust

Fund Administrator: Bolder Fund Services B.V.

Monthly subscriptions and redemptions (Redemptions must be notified by the 15th of the month due to position reduction). Monthly statement (reporting) of your participation.

Participation:

Minimum investment: €100,000

Additional investment and withdrawals: €10,000 (Withdrawals are only permitted if the participant maintains at least €100,000 in participations).

Subscription: Via these forms.

Fund costs

EdgeFund applies a variable management fee and profit sharing, depending on the invested amount. Participation is possible in 3 different participation classes:

Participation Class I
€100K-€250K Minimum investment
1.5% Management Fee (per year)
22.5% Profit Sharing (per month)

Participation Class II
€250K-€500K Minimum investment
1.25% Management Fee (per year)
17.5% Profit Sharing (per month)

Participation Class III
€500K and higher minimum investments
1% Management Fee (per year)
12.5% Profit Sharing (per month)

The manager calculates profit sharing based on the “high water mark principle.”
High watermark:

A high watermark refers to the highest value achieved by an investment fund or asset manager. This term is often used in performance-based compensation of a fund or asset manager.

In a fee structure with a high watermark application, commission fees of a fund manager or asset manager are only calculated based on net results. The fee is only calculated after past losses have been recovered. This prevents the fund manager or asset manager from receiving fees from volatile performance.

Profit sharing is calculated retrospectively on a monthly basis, and the high watermark level is also determined monthly.

Returns

Below you will find the net results of the fund.

Request Factsheet!

EdgeFund Cumulatief resultaat
Infogram

EdgeFund resultaat
Infogram

DD%	4.97%
Historical recovery time:	65 days
Std Dev	3.45%
2023	20.69%
Past 12 months	24.37%

Receive the information memorandum

General disclaimer on returns:

Bolder Funds Services B.V. (administrator) calculates the fund’s results on a monthly basis. The above results are net of the 22.5% profit share and the 1.50% annual management fee. The returns from September 1, 2022, represent the actual results of the fund. Returns prior to September 1, 2022, are based on forward testing (live account) and not on backtesting. These returns should not be considered as an indication of future results.