the all points absolute return funds ' opportunity fund concentrates on the early strong performance of flexible, young hedge funds
The Bank of Bermuda has launched a hedge fund seeking to take advantage of the early strong performance of hedge fund managers.
The All Points Absolute Return Funds ' Opportunity Fund will invest in new hedge funds to try to catch the often significant returns successful young funds achieve.
According to the Bank of Bermuda, hedge fund managers often achieve early success because their smaller asset base offers greater flexibility.
They also have more of a driving need to grow assets and managers' focus on risk and return are clearly aligned with investors' in the early stages of a company's life.
This alignment is given further impetus, as a significant portion of managers' own net worth is often tied up in a fund in the early stages of its lifespan.
Adrian Fairbourn, director of alternative investments at the group, said: 'While investing in start-up hedge funds may be seen as potentially risky, it is while they are young that hedge funds often perform the best. We are offering a way of capturing that early performance while seeking to minimise the risk to our investors.'
A portfolio of about 12 to 15 managers will be maintained in the fund, which will deal monthly with no lock up period.
A minimum initial investment of $250,000 is required for class A shares and $10,000 for class B shares, with subsequent minimum transactions of $50,000 and $5,000 respectively.
An initial fee of 5%, with annual fees of 0.5% for class A shares and 1.75% for class B shares is charged. There is also a performance fee of 10% on the increase in the net asset value of class A shares.
In a further hedge fund launch, Aspect Capital has created a multi-strategy hedge fund investing in a diversified range of strategies offered by internal managers.
The Aspect Master fund will invest in various strategies, including managed futures, fixed income, European equities and currencies. The fund was launched to give investors the opportunity to invest in all of its strategies through one vehicle.
Aiming to generate consistent growth independent of stock and bond market indices, funds are run through the selection of holdings which the internal research teams can prove to show persistency.
The managed futures objective is to continuously monitor price movements in more than 100 global financial, currency and commodity markets.
This includes bonds, interest rates, stock indices, energies, metals and agriculture.
The European long/short equity strategy is to use a multi-factor momentum, growth and value stock selection process, taking both long and short positions across Europe's top 500 companies.
The European equities market neutral fund utilises a similar investment process. It has both long and short positions across Europe's top 500 large-cap companies, however, the fund's differentiating feature is that it has no market or sector bias.
The fixed income fund is a highly diversified portfolio. It combines both value and momentum factors over multiple timeframes.
The portfolio invests in bonds, interest rates and currency markets of the world's largest economies. Last year, the fund reported a return of 9%.
A highly-diversified portfolio is also created in the currency fund and similar to the fixed income fund, it combines both value and momentum factors over multiple timeframes.
The portfolio invests in currencies of both developed and emerging economies across more than 25 currency markets worldwide.
The Aspect Master fund, which is domiciled in the Cayman Islands and has a minimum investment of $100,000, was initially seeded with $20m and aims to generate consistent long-term capital growth of between 20%-25% a year.
Fees include a management charge of 2% and a 25% incentive fee.
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