The Merrill Lynch European Equity hedge fund, which launched in February, is now open to third par...
The Merrill Lynch European Equity hedge fund, which launched in February, is now open to third party investment, writes Ruth Alexander.
At launch, the fund was only marketed to Merrill Lynch clients but now IFAs, fund of funds and institutional investors will be able to buy into the long-short vehicle.
The fund, which has a minimum subscription of E100,000, is being run by two pan-European managers, Michael Legros and Samuel Joab.
It was originally intended that the fund, which carries a 1.5% annual management charge, would be invested by a three man team including Peter Davies, whose onshore UK Dynamic Fund received an frAAA rating from Standard & Poor's in October.
However, Davies announced his departure for US hedge fund group Lansdowne, along with his colleague, Stuart Roden, a week after the Merrill Lynch Cayman Islands domiciled hedge fund was launched.
The group has decided not to recruit a replacement as Legros and Joab have sufficient knowledge to cover the UK portion of the portfolio that Davies would have concentrated on, according to Merrills. The hedge fund, which has a net asset value of E53m, will be capped at E500m and is designed to cater mainly for the ever-expanding group of high net worth individuals.
According to the group, the fund has shown positive monthly returns and low volatility since its inception.
Merrills currently has more than £1.5bn of assets under management in its range of hedge funds but this is the first time it has extended that capability to continental European equities.
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