Swiss private bank Sarasin & Cie has closed its Thematic Hedge fund because of the poor outlook for ...
Swiss private bank Sarasin & Cie has closed its Thematic Hedge fund because of the poor outlook for generating returns from the global long/short fund.
Ivo Forde, head of communications at Bank Sarasin, said the fund's loss of 6.04% since inception on 31 August 2001 had been average compared to its peers, despite outperforming the MSCI World Index, which fell 28% over the same period.
The fund has never risen above its price at inception and having reached $100m in size, Forde said. Sarasin has been gradually selling down assets prior to closure, reducing it to about $12m.
The fund, managed by Mark Holman out of London for Sarasin's existing private clients, selected its positions from the global stock universe analysed by Sarasin. The bank felt it would be difficult to continue generating meaningful returns with this kind of fund as it is risk averse, Forde said.
The fund was invested according to themes, such as corporate restructuring or survival of the fittest, he added.
Holman is to remain with the bank to manage other assets and clients invested in the in-house single strategy product have been offered alternatives for their hedge fund investments.
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