Alternative investment manager PCE Investors is launching the Gyldmark Liquid Macro Fund this month. It intends to provide investors with exposure to a pure macro strategy by minimising other risk factors including illiquidity of investments, lack of disclosure and redemption restrictions as well as credit, counterparty, operational and fraud risk.

PCE, representing total assets under management of over $1.3 billion, said Gyldmark will integrate macro fundamentals (business cycle dynamics, structural economic, social and technological shifts, government policy impact and geopolitics), market themes (commentary, research and professional press, investor perceptions and flows and key market drivers) and technical conditions (price action, momentum and emerging trends, investor positioning and sentiment data, and stop loss and target levels).

These three factors will be used to identify investment opportunities. Gyldmark will invest in exchange-traded instruments, highly liquid foreign currencies and major government bond markets.

On the operational side the fund team is part of PCE Investors which has oversight on the business operations of the fund, taking care of legal and compliance as well as operation risk. The risk function monitor s the fund's portfolio on a real time basis to ensure it operates at all time in line with its offering memorandum.

The fund portfolio managers are Mahmood Noorani, chief investment officer, and Alastair Hollingdale supported by strategist George Hatjoullis. The team has a successful history of building and managing trading businesses. Prime broker is Newedge. Legal counsel to the fund is Dechert and Walkers. Administration is provided by PNC Global Investment Servicing and auditors are Grant Thornton.

Minimum investment in the Cayman Islands domiciled fund is $100,000. It expects to have capital of around $30 million in month one. No upper limit has been set for the fund.

There will be two share classes. Class A shares will target a return of 15%-20% with 8%-12% volatility. This class has a 1% management fee and 25% performance fee. Share class B targets an annual return of 45%-65%, will be a little more leveraged with volatility of 24%-36%. The fund managers are invested in this share class which has a 3% management fee and 25% performance fee.

At present there are no plans to launch a parallel Ucits structure, although this has not been ruled out.

PCE operates its funds through a partnership under which portfolio managers are given independent investment creativity while taking advantage of the economies of scale, central business leadership and operational controls. The business model is aimed at developing high performing strategies while mitigating operational risk.

PCE Investors is part of the SW1 Capital company, an integrated asset management business providing a full spectrum of investment solutions including hedge funds, private equity investments and is a founding partner of the ETF exchange.