Old Mutual Global Investors has launched an offshore Cayman hedge fund based on its 2009-launched UCITS-compliant Global Equity Absolute Return Fund, reports HedgeWeek.
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The new fund with US$50 million of seed capital, known as the Old Mutual Arbea Fund, will be managed by the same team as the US$220million GEAR fund: Ian Heslop (head portfolio manager), Amadeo Alentorn and Mike Servent.
The fund uses a systematic global market neutral strategy and since 2009 has generated annualised returns of 7.8% with volatility of 5.4%. It is already up 16.8% YTD and aims to deliver genuinely uncorrelated returns.
Donald Pepper, managing director of alternatives at Old Mutual Global Investors, said: "We will keep this sensibly calibrated UCITS version for HNW investors, private banks and family offices.
"We have recalibrated the risk/return profile of the offshore Cayman fund to deliver higher expected returns that longer-term institutional investors are seeking. The aim is to target a higher volatility of 8 to 9 per cent for expected returns of cash plus 9 to 10%."
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By GlobalDataThe new fund is the third hedge fund in the Old Mutual Global Advisors’ stable. The other two funds include: the UK Specialist Equity Fund, managed by Ashton Bradbury since inception in March 2003, and the Global Statistical Arbitrage Fund, managed by Paul Simpson and John Dow.
