Investing in the future
Putnam Investments is a new investment fund that is offering a “strategic investment opportunity” to help hedge fund investors buy a portfolio of stocks.
It is the first fund in the world to use blockchain technology to track the price of its investments.
Read more putnam investments article The fund is based on the technology developed by a group of Silicon Valley hedge fund managers called The Future Fund, which is led by Jim Cramer, CNBC’s chief investment officer.
The firm, which also owns a minority stake in Citadel Capital, has already raised $500m from institutional investors, which are taking a hands-off approach to investing in stocks, while taking a risk-free position on their returns.
Its main focus is on equities, which have traditionally performed well.
“The most important part of the portfolio is in the form of equities,” Mr Cramer said.
“The market has to be diversified.
If it’s not, it doesn’t work,” he added.
The fund is also offering a portfolio which includes stocks with “substantial” upside potential.
This means that its portfolio is priced to cover the return on a portfolio that includes high-flying companies.
The average return for the fund is 7.5pc, with a total return of 14pc.
Its approach to its investment strategies is similar to that of Vanguard’s investment strategy, which aims to diversify its investments in the hopes of generating higher returns.
The Future Fund is currently focused on equades and tech companies that are in “the next great revolution”.
Its target is to raise between $50m and $75m.
The team behind The Future Project said that the strategy is in line with the approach taken by many of the largest hedge funds.
The fund also believes that the market is still “fuzzy”, and that the next wave of financial innovation will take many more years to see.
“This is not a short-term play,” said Mr Cramer.
“We’re going to be investing for the long haul.”
He added: “We are looking at companies that we believe have the potential to revolutionise the financial world.”
The Future Project’s investors include billionaire investor Paul Singer, hedge fund manager Jim Cahn and billionaire investor Michael Dell.