Investing in closed-end funds trading at a discount to their underlying net asset
value (NAV), such discounts are its element of distress.
GGOF is based on a strategy which began in August 1997
(before the investment team brought its proprietary strategy to Gramercy in July
2005) and invests in closed-end funds trading at a discount to their underlying
net asset values (NAV). Such discounts are the “element of distress” that Gramercy
is seeking to capitalize on. The strategy uses a proprietary equity optimization
model developed by Dr. Tony Tessitore and team, and driven by Dr. Harry Markowitz’s
Nobel Prize winning portfolio optimization theories. The Model directs optimization
by country, region, and security from a universe of closed-end funds, framed by
a set of constraints determined by investment guidelines. This optimal portfolio
is further adjusted with the input of Dr. Tessitore. No leverage is used. The Global
Optimization Fund is designed to outperform a broad global equity benchmark, the
MSCI All Country World Index by investing in such controlled portfolios of closed-end
funds and ETF’s.
GEMEF is designed to outperform the MSCI Emerging
Markets Equity Index by investing in controlled portfolios of emerging market focused
closed-end funds and ETF’s.