LJH global announces alliance and plans to develop range of hedge fund of funds products
Hedge fund advisory firm LJH Global Investments has formed a joint venture with Attica Portfolio Management to develop a fund of hedge funds product line. In addition, LJH Global Investments has plans to distribute capital guaranteed products in the Middle East and the Far East.
The alliance between LJH and Attica will provide European institutional investors and high net worth individuals with access to a tailored group of funds under the Attica- LJH umbrella.
While product and distribution details are under development, the plans call for LJH and Attica to develop funds of hedge fund products that provide diversification across a variety of hedge fund strategies and managers. Likely products to be offered include long- only multi-manager, hybrid long-only hedge funds and market neutral.
James R Hedges IV, president of LJH, said: 'Investors are increasingly relying on hedge funds as core components of a well-diversified portfolio. As the prospect of lower returns for equity markets over the next few years limits investor options, broader-based fund of hedge fund products are ideal for investors who seek exposure to hedge fund investing.'
According to Ronald M Neumunz, managing director of LJH, this is a complementary relationship where LJH provides a robust hedge fund manager selection process in combination with Attica's hedge fund skills and product range.
LJH has been selecting managers for more than 10 years. The process involves initially screening a universe of 800 potential managers, a process which includes carrying out due diligence and company visits. Over the next six months, LJH also plans to target the Middle East market to offer capital guaranteed hedge funds. The plan is to launch lower entry-type products with minimum investment levels of between $10,000 and $20,000.
Although LJH has not identified a partner as yet, it has worked with Phoenix in the US to provide similar products.
In the US, Phoenix offers individual investors access to a portfolio of hedge funds requiring smaller investment minimums than other types of hedge funds.
In Japan, LJH is talking with potential clients in Tokyo with the possibility of distributing capital guaranteed products in the country. However, in Hong Kong, the type of products offered will depend on new regulations regarding hedge funds. A commission paper for guidelines on securities and futures is currently being prepared.
Nonetheless, capital guaranteed products are very likely to be among those offered.
Neumunz added: 'These markets have had a traditional interest in capital guaranteed-style products. Investors are familiar with structured type products and would like to invest in a product that provides some guarantee.'
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