Investment manager Polar Capital has launched a long/short global absolute return fund that will offer exposure to convertible securities, corporate debt and equities.

The launch of the new strategy, called Polar Capital Global Absolute Return fund, is said to have been triggered by investor demand.

The Dublin-domiciled UCITS fund aims to achieve a net return of 5-8% and return volatility of nearly 6%.

Polar Capital global head of distribution Iain Evans said: “Before making the final decision to launch the fund, we conducted a round of pre-marketing, all of which reaffirmed our view that investors are actively looking for liquid, alternative strategies that can navigate and benefit from a more volatile environment, there is strong interest in absolute return strategies at the moment.

The new vehicle will be managed by the firm’s global convertible team, headed by David Keetley in London and Steve McCormick in the US.

The pair will be assisted by David Sugarman and Jake Collins in London and Uttkarsh Lal in the US.

“This new fund has the characteristics of a long/short equity fund, except that the long exposures are generated through long convertible positions. It also has some of the characteristics of a convertible arbitrage fund,” Keetley noted.