The capital has come primarily from private contacts: senior people working in technology and compan...
The capital has come primarily from private contacts: senior people working in technology and company executives who who want some contact with the industry.
Flynn recruited Fidelity's Edgar Allen to help her manage the long portfolio while Goldman Sachs trader Gareth Hodgson will run the short book for the fund, which is to be called the Avocet European Technology fund.
The fund was originally backed by Mike Lynch, chief executive of software company Autonomy, and entrepreneur Peter Dubens.
Flynn will actively promote inter-investor meetings, and an important part of the value of this fund will come from the networking possibilities inherent in such an investor base.
She said: "At some point we might take institutional money but at the beginning we want a group of people who are useful to each other and useful to us."
Flynn, who was Deutsche's UK technology specialist for three years, will emphasise company research and stock selection and avoidance of market risk on the long side. She expects to hold stocks on a 12 to 18-month timeline.
Meanwhile, Hodgson will take a very different view on the short side, doing short-term market movement analysis to reduce portfolio risk.
Flynn said: "The long part comes out of companies we like and consider to be good. The short side is tactical trading."
However, due to the fund's shorting discipline, which requires long plays to be matched with similar short plays, the longs will have to have approximately the same market cap as the shorts.
Flynn said: "This is not a market neutral fund, but in some respects, it will have some of the characteristics of one."
She is aware of the liquidity problems that exist in shorting illiquid stock in Europe and so the fund will, at least until the markets mature, be concentrating on larger companies.
Potential holdings will have to have a market capitalisation of at least $400m.
An important role for Flynn will be the development and application of the fund's disciplines. The maximum long holding will be 6% of the fund, while the maximum short will be 3%. The maximum gross exposure to any one tech subsector of which Flynn counts about a dozen, will be 25%.
100 new clients
Achievements, charity work and other happy snippets
Square Mile’s series of informal interviews
Partner Insight: The rise in demand for DFM and multi manager solutions has been largely driven by new mandates from the regulator, says James Bampton, head of UK intermediary distribution at Architas