The initiative began with seasoned hedge fund professionals who decided to launch their own fund after years of industry experience. Victor Frandsen, formerly a portfolio manager at the Cyprus-based Squared Financial, decided to leverage his more than 20 years of experience in asset and portfolio management to launch and manage the STABLE ROCKS fund in 2024.
Drawing on his connections with investors and automotive engineers, Victor conceived a fund that invests in tangible assets and commodities specifically, vehicles that could be purchased at competitive prices and subsequently resold, thereby creating opportunities for substantial profit margins. The fund’s operational model differs significantly from conventional hedge funds; while standard funds typically charge management fees ranging from 1% to 2%, STABLE ROCKS charges no management fees on assets.
Instead, Victor opted for a different approach: his team executes operations using the managed capital without levying management fees. The fund assumes the risk on behalf of its clients, meaning that any losses incurred are covered by the fund itself, ensuring no deductions are made from the clients' principal capital. Conversely, any profits generated are treated as net gains for the fund's assets.
The concept was presented to Brian Lyon a risk manager in the asset management sector and Snezhka Lior, a businesswoman specializing in import-export. Both welcomed the idea and provided "angel" capital of $1.2 million each. This marked the actual commencement of operations, beginning with the acquisition of advanced automotive security assets, executed through a series of four consecutive transactions. Its profits accrue entirely to the fund.
In agreement with the Board of Directors, Victor decided to begin accepting capital from investors via a secure online platform built using state-of-the-art technology, designed to ensure privacy, security, and transparency for the investor. Brian Lyon, the Chief Operating Officer at Stable Rocks, decided to expand the team and investment activities to include equity ownership in companies, this strategy aims to mitigate risk and ensure continuous returns, even if certain activities face disruptions or delays in profitability. Consequently, the Board mandated that Brian select investment activities with a profit-realization horizon of no more than one year and stipulated that no more than 30% of the fund’s capital be tied up in ventures that do not generate at least monthly returns. The Board also decided to allocate a portion of the assets under management to exchange-listed commodities and assets managed directly to generate quarterly profits as well as to the automotive trade and any other emerging investment opportunities.
Operations subsequently expanded, generating profits for the fund's participants, with the Board of Directors meeting monthly to discuss plans and evaluate the fund's overall performance.
The fund operates on a "circle-within-a-larger-circle" concept. The inner circle comprising the investors is shielded from risks affecting the fund's performance; the Board of Directors is obligated to cover any losses incurred during a given period, while any surplus profits accrue to the fund as net profit. The expected return rate for clients is determined in advance reflecting STABLE ROCKS' commitment to complete transparency and is reviewed on a quarterly basis. This rate is calculated by the Board of Directors following an assessment of the fund's status, performance, ongoing transactions, and assets.
Given current circumstances, our vision aims to evolve the traditional concept of investment diversification for clients by delivering returns generated by experts capable of achieving superior results through trading higher-value assets.
