US Investing withthe World’s Original
s an investor, do you worry about the QE-laced stock rally continuing, given the threat of QE withdrawal?And as an expatriate American investor, withrestrictions on investing at home, are you wary of investing offshore, particularly with the real prospect of FATCAimplementation?A.W. Jones is a fund that addresses both dilemmas. It’s anonshore US fund with onshore US tax reporting that will acceptUS nationals who are resident abroad. And it’s equity long/short:positioned to benefit from up moves in the markets but withdownside protection of, on average, 50 percent through shorts.The fund has returned close on 2,000 percent since its inceptionas a fund of funds in June 1984.Additionally, there’s a non-US version for non-Americans.Here’s a comparison with the S&P 500 index since June 1984,the fund’s inception in its current fund-of-funds structure:
toal pefomance 1985–2012652.78%1,962.72%Bull pefomance 1987–1999406.70%503.37%Bea pefomance 2000–2012-3.06%84.77%
(reasons fo he choice of bull yeas: he las bull make saed in 1982, ageed,bu he numbe of compleed bea yeas fom 2000 on ae 13 in oal, so fo a faicompaison, he las 13 yeas of he pio bull make have been chosen.)
What emerges from these statistics is that the downsideprotection does not hamper the fund’s capacity to make money.Not only has the fund trounced the index outright, while offeringdownside protection and lower volatility, it has also outperformedby far in a decade and counting that has been essentially sideways.Looking at the bad years—those years that can wreck an investor’sportfolio, as well as their nerve—we can see the diminution of risk:
The years 2002 and 2008 were not pleasant, but the damagewas greatly ameliorated by the fund. As you can see from thechart, 2008 was not good, but it was considerably better incomparison. The 84.77 percent return between 2000 and 2012shows a sheer outperformance of a flat-lining index.An 11.2 percent compound annual return since inceptionas a fund of funds puts A.W. Jones among the top performingglobal long/short equity funds of funds. With its proven defensivecapability, it limits your risk, without limiting your returns. Andas it’s an onshore US entity, you won’t be stumped on how to filewhen tax season comes along.For the non-US clone, of course, non-US investors are notrequired to file a US tax return on the investment.Information on this well-performing but risk-controlling fundis available from Banner Japan K.K.
The firm was founded by Alfred Winslow Jones in 1949 andis generally regarded as the world’s first hedge fund. It gradually evolved into one of the first fund of funds, which is its structuretoday. A.W. Jones has remained family controlled since inception(Portfolio Manager Robert L Burch, IV is Alfred Jones’ grandson)and has operated under the same proven long/short equity investment philosophy throughout its history.Now in its seventh decade, the firm remains focused on achievingsuperior returns for its investors with the lower market risk inherent in the Jones-model strategy of hedged equity investments.The fund is currently invested in 20 managers and has morethan $330 million under management. It often invests early innew emerging managers and grows with them over time, so thatat any point in time the portfolio consists of a mix of smaller,emerging managers and larger, more established ones.The fund has allocations to Lone Pine, Viking, Pershing Square,Tiger Global, Bridger Capital (Swiftcurrent Fund), Greenlight,Samlyn, Wellington (Bay Pond) and others. With the likes of LonePine, Tiger Global, Pershing Square and Samlyn, A.W. Jones wasa day-one investor. As a day-one or early investor, the fund oftenenjoys beneficial fee terms and continued access, even where thefunds are closed to new investors.
Banner Financial Services Japan K.K.firstname.lastname@example.org