DFD Select Group has launched a fund of hedge funds umbrella aimed at institutions and high net wort...
DFD Select Group has launched a fund of hedge funds umbrella aimed at institutions and high net worth individuals (HNWIs).
The DFD Swan Fund of Funds, which will be managed by Swan Capital (Guernsey), contains three separate funds of funds, differentiated by the strategies they invest in. The three funds focus on long/ short, merger arbitrage and commodity trading funds (CTA) respectively.
While the fund is aimed at institutions and HNWIs, investors of more modest means may be able to buy into it, according to DFD Select Group president David Tucker.
There are no transfer charges between the funds, which offer weekly liquidity. The ability to enact penalty-free transfers within the funds of funds structure gives investors leeway to invest according to their circumstances and market predictions, said Tucker.
Each of the fund of funds within the umbrella will invest in a minimum of 10 hedge funds, although there is no maximum to the number of holdings in each.
'Assuming one is trying to buy 30 hedge funds, a minimum of $15m will probably be needed to duplicate the portfolio, not taking into consideration the considerable amount of work that would be required,' Tucker said.
The fund is Dublin registered, regulated and listed and denominated in US dollars.
It requires a minimum investment of E250,000, with a minimum of E30,000 invested in any one fund of funds. The minimum further investment is E30,000.
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