Fortem launches UCITS managed futures fund

Fortem Capital has launched the Fortem Capital Managed Futures Fund, a daily-dealing UCITS strategy that combines DBi’s managed futures replication framework with a targeted convex overlay. The fund is open to professional and institutional investors.

DBi’s replication framework seeks to recreate the aggregate positioning of the CTA industry by using liquid futures across equities, fixed income, currencies and commodities. Fortem says the approach aims to capture the core return drivers of managed futures strategies while reducing manager selection risk and lowering ongoing fees.

The convex overlay is designed to provide targeted downside protection during sharp equity market sell-offs. Fortem says the protection is intended to limit losses in severe equity dislocations without materially changing the replicated exposures.

The UCITS structure offers daily liquidity and carries an ongoing charge below the broader CTA industry average, according to Fortem. The firm says the fund standardizes exposures common across many commodity trading advisers and reduces fee drag associated with active CTA allocations.

Kevin Gray, chief investment officer at Fortem Capital, described the firm’s focus on implementation over invention: “Replication allows investors to retain the characteristics that make managed futures valuable while materially reducing cost and manager selection risk.”

Fortem Capital manages more than $3 billion across liquid alternatives strategies. DBi oversees over $4 billion in hedge fund replication assets. The firms position the new UCITS fund as a lower-cost, daily-dealing option for sophisticated investors seeking managed futures exposure with an added layer of downside protection.