It's been a rough couple of month for many investors smacked by just one sole portfolio investment or markets. Volatilities remain high, and Global Capital Management Limited, alternative Investment funds arm of Global Investment House; remains focused on capital preservation, liquidity, and flexibility in all our investment strategies. The objective is to provide growth of capital and regular dividend distribution from a portfolio of multi-manager fund which may utilize a variety of investment strategies, creating a diversified investment vehicle for investors.

As per Mr. Shailesh Dash, Managing Partner at Global Capital Management, the most important mandates of hedge funds is to limit down side risk and as a show of confidence to our investors. Mr. Dash also stated that Global Investment House is one of the very few that has taken the unprecedented and extraordinary step of returning capital to investors in the form of a special dividend in many of its funds.

Global Umbrella Fund is a fund of funds which is divided into three subs US, Europe and Asia Japan based manager. Hedge funds and Funds of Funds were introduced by Global Capital Management to the regional investors as an effective product for diversification.

Mr. Joseph Joseph, Partner and Head of Hedge Funds & Funds of Funds at Global Capital Management said that one of the funds, Global Umbrella Fund – Japan Asia has recently registered a good range return of 6% year to date up to June 2009 compared to MSCI Far East Index of only 4.86%. He indicated the reason being the portfolio has seen a fair amount of churning in 2008. He also added that the essence of the fund is that it may not offer very high returns, but it definitely offers peace of mind with fairly good returns. Even during periods when the fund delivered negative returns in 2008, returns from this fund fell by a lower percentage compared to its benchmark and peers.

More over Mr. Joseph also pointed out that In this current environment, the heat is on hedge funds to outperform markets and prove their worth to skeptical investors, and to do so requires strategies based on riding out spikes in volatility and seeking liquidity. He said that returns this year will, of course, not be what they were in the over-leveraged days before the financial crisis, but convictions on one's investment strategies and asset allocation will help the best and brightest funds to survive.

The Global Distressed Fund , which has returned approximately 4% YTD 2009, also beat its benchmark HFRI ED: Distressed/ Restructuring index in 2008 by 3.5%. The one thing which has been lost on hedge funds as a whole of late is that, they should indeed “hedge”.  Excess alpha generation is by all means important, but the same needs to be viewed on a risk adjusted basis and not at the expense of capital preservation. To that end, we are pleased with the Fund’s performance to date and its promise fulfilled of prudent hedging and capital preservation. Diversification which is usually difficult to achieve for a distressed hedge fund, can easily be achieved through a fund of funds platform without the need for large individual commitments. Furthermore, the Global distressed fund has been actively managing its cash portion and is well poised to take advantage of the numerous opportunities currently existing in the distressed space.

The Distressed fund is advised by the team in Global Capital Management and headed by Joseph Joseph. The Global Distressed Hedge Fund will also benefit from Global Capital Management's dynamically evolving Hedge Funds team which has invested across over 150 different hedge fund managers. The team will be part of the investment committee which oversees the implementation of a thorough investment approach and adheres to strict risk management guidelines to generate superior absolute returns.

We believe that the Global Umbrella Fund – Japan Asia and the Global Distressed Fund offer investors an excellent investment opportunity as it provides GCC investors a hedge against continued near-term market turbulence and an opportunity to profit from the very attractive Asian bull run and the distressed strategy space that are set to drive the fund of funds returns for the foreseeable future.