MoneyGuru is to launch its first long/short global hedge fund by early November. Called the K-Fund...
MoneyGuru is to launch its first long/short global hedge fund by early November.
Called the K-Fund, the portfolio's asset allocation will be based on the investment strategy of Elias Karakitsos, visiting professor at the management school of Imperial College.
The fund will use Karakitsos' proprietary fair value model and business cycle analysis to select the optimal geographic and sectoral asset allocation split.
The K-Fund will invest in equities and bonds in Europe, the UK, the US and Japan. Short positions are expected to comprise a maximum of 20% of the portfolio. Gearing will be minimal.
Charles Fowler, chairman of MoneyGuru, said: 'It will be very much a top-down approach, looking at the main drivers in the world economy and applying sophisticated risk analysis to analyst predictions.'
MoneyGuru is targeting an annual return of 15%-20%, while maintaining sub-10% standard deviation and a Sharpe ratio of below 2%.
The K-Fund will be an Oeic domiciled in the Cayman Islands and listed in Dublin. It will be advised principally by Ian Lancaster, head of investment at MoneyGuru, with Karakitsos, who has also seeded the fund, working in an advisory capacity. Lancaster will be backed by Fowler and teams of analysts in Athens and London.
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