Overview

Point Clear Capital Management, LLC (“PCCM”) is a wealth management firm established in 2005 that specializes in helping clients measure and manage portfolio risk.  The firm seeks to provide value to its clients by being a consolidated resource for risk management, transaction structuring and money management.  PCCM is headquartered in Westport, CT.

PCCM’s products fall into 2 categories: i) advisory and ii) money management.  Firm clients include family offices, multi-family offices, endowments and fund managers.  PCCM currently manages funds in both on-shore and off-shore vehicles, as well as separate accounts.  The firm currently has approximately $68 million in assets under management in funds, separate accounts and structured transactions.  PCCM’s competitive advantage is in combining access to sophisticated risk / pricing models with customized structuring capability and in-house trading execution.

Advisory Services

Risk Assessment Report

PCCM’s core advisory product is the Risk Assessment Report.  This report offers clients an ongoing assessment of portfolio risks using various risk models and analysis.  The Risk Assessment Report can be tailored to specific areas of concern, such as defining and quantifying portfolio “tail risk” or dominant risk factors.  PCCM assists clients in interpreting model results and in assessing various risk mitigation strategies.  Clients have found that the Risk Assessment Report is an invaluable tool in the ongoing portfolio management process.

Structuring / Pricing

PCCM’s structuring and pricing advisory services range from specific transactions designed to produce specified returns to portfolio strategies that mitigate targeted portfolio risk.  Clients have used the firm’s pricing capability to simply price structured transactions or structured notes prior to execution with a broker-dealer.  Unlike many traditional street advisory firms, PCCM offers its clients “street grade” structuring and pricing without the inherent bias to execute a financial transaction.

Money Management

Managed Funds

In addition to its risk advisory services, PCCM manages approximately $68 million of assets through managed funds, separate accounts and structured transactions.  PCCM’s fund’s are primarily “thesis driven”, meaning they typically are not total return funds designed to earn returns in any market environment.  The thesis funds are structured and managed to provide clients with targeted risk / return profiles which play a specified role within the client’s portfolio (e.g., a macro-market hedge).  The firm manages funds in both on-shore and off-shore structures.  PCCM currently manages 2 thesis funds – Gamma and Beta.  The Gamma fund is designed to be a macro-market hedge against a prolonged market “double-dip”, while the Beta fund is a macro-hedge against future U.S. inflation.  All PCCM funds are marked daily and provide investors with monthly liquidity.  All funds are administered by Archway Technology and audited by KPMG, LLP.

Separate Accounts

PCCM works with clients to structure separate accounts with customized risk profiles that meet specified portfolio objectives.  Separate accounts are typically designed in tandem with PCCM’s risk assessment work for clients.  PCCM has managed separate accounts from limited partnership structures and directly from client accounts.  Clients have utilized separate accounts for objectives ranging from hedging targeted asset classes or specified transactions to implementing structured transactions that express an investment view.

Structured Transaction

PCCM periodically raises capital from its clients to execute targeted transactions that have attractive risk / return profiles.  These transactions are usually executed in the over-the-counter derivatives market and are predicated on achieving tailored investment views.  PCCM works with clients to structure transactions that meet common investment objectives and that optimize or exploit current market pricing. 

The Alpha 1 fund is a fixed income relative value fund launched in May 2006 that takes long and short positions in highly liquid U.S. corporate bonds, loans, swaps, futures and options, as well as U.S. Treasuries. Target annualized returns are 10% - 15% net of all fees. The fund’s objective is to implement a low net leverage relative value strategy with a directional bias based on fundamental and technical macro-economic analysis. PCCM utilizes proprietary risk management models to limit downside risk in portfolios designed to provide long-term excess returns.

  

The Piedmont Fund Beta Series is designed to be a portfolio hedge against U.S. inflation.  The fund’s investment mandate is to add return in a rising U.S. interest rate environment, where commodity prices are increasing and the value of the U.S. dollar is decreasing relative to other currencies.  Beta carries short positions in U.S. Treasuries and the U.S. dollar, as well as long positions in crude oil, gold and natural gas.  Beta’s portfolio is actively managed and strategically hedged.  Fund performance is measured against a benchmark portfolio.  Beta is a Cayman Island limited liability company.

The Point Clear Gamma Credit Fund’s mandate is to provide investors with significant returns in a declining market environment.  Gamma is designed to be utilized as a macro-market hedge.  The fund’s portfolio is constructed around short credit (bond) positions, with the core short exposure dedicated to selected European sovereign bonds, as well as U.S. corporate and municipal bond indices.  Gamma is actively managed through the trading of core exposures and the integration of portfolio hedges, designed to mitigate the cost of short positions and protect fund value.  The fund is a Delaware limited partnership.