Pescara Partners Inc. is launching a new fund of funds made up of hedge funds, the Pescara Fund of Funds. The investment objective of the fund is to earn a positive risk-adjusted return that is uncorrelated with major equity and fixed income markets.

The fund will be distributed through registered dealers in Ontario and is available via FundSERV.

A key attribute of the new fund is its independence. The fund is not affiliated with any of the underlying funds therefore able to adjust the portfolio as needed and work with some of the premier hedge funds available to Canadians. The management fee for the fund is 1.65% and the performance fee is 10%.

Pescara has retained Felcom Management Corp. to provide investment advice on the selection of hedge fund managers and for the fund’s asset allocation strategy. In order to diversify risks, Felcom will allocate the fund’s assets to various hedge fund managers using quantitative and qualitative methodologies.

Sergio Simone is an Investment Strategist with Felcom. Simone is currently the President of the Canadian Hedge Fund Association and one of Canada’s leading authorities on alternative investment strategies.