ian mcveigh's hedge fund boutique to link up with stuart newton's real return holdings
Ian McVeigh's hedge fund boutique, Parkway Capital, is to tie up with Newton Investment Management founder Stewart Newton's new company, Real Return Holdings (RRH), after Jupiter unveiled McVeigh as new manager of its UK Growth fund.
RRH is to buy an equity stake in Parkway and likewise Parkway will buy a stake in Newton's new venture. Nick Carn, managing director at Parkway, said the deal will enable the groups to pool financial and investment resources.
The news comes after the departure of Parkway's co-founder and manager of the Parkway Global fund, Ian McVeigh, who is joining Jupiter in April to run its £429m UK Growth fund.
McVeigh, who joins Jupiter on 7 April, replaces current manager Justin Seager, who will remain at Jupiter managing institutional portfolios.
McVeigh left Schroders in February last year to set up Parkway Capital, where he managed the Parkway Global Fund, a global macro hedge fund which launched in July last year. He will continue in an advisory role at Parkway and will remain a substantial investor in the $7m long/short fund, which will now be managed by Carn.
While McVeigh has a reputation for managing value funds he said he has no immediate intention of altering the Jupiter fund's growth bias.
He said: 'In 1999 the premium for growth companies got massively overdone and in this climate you needed more of a value bias. Now the premium for growth has come back again and I believe more of a growth bias is needed.'
Over 12 months to 3 March 2002, the Jupiter UK Growth fund, under Seager's stewardship, is ranked 212 out of 296 funds in the UK All Companies sector, returning -30.5%, compared to the sector fall of 33.0%.
Meanwhile Newton, former chairman of Newton Investment Management, is launching RRH, an investment house focused on long-term absolute returns with two other former Newton directors.
Charles Richardson, former chief investment officer at Newton Investment Management, will be managing partner and will lead the investment team. Colin Harris, who was chief executive of Newton Investment Management, will be the commercial partner.
Commenting on the new investment house, Newton said: 'While equities have historically achieved the best returns and are likely to continue to do so over the longer term, there have been, and will be, periods when they do not deliver.
The funds being launched will include institutional funds, a mutual fund, a hedge fund component and an Oeic. It is expected the funds will not be sold through an IFA network but directly from the business on a fee basis.
The Real Return, a limited liability partnership (LLP), intends to build up an investment team of six to ten staff, which will invest on an absolute return basis. Newton, who left Newton Investment Management in 2000 after it was bought out by Mellon, will not be involved in day-to-day money management.
Real Return is expected to launch early in the summer, subject to FSA approval.
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