GAM is to launch a fund of arbitrage portfolios on 23 September, after nearly two years of planning....
GAM is to launch a fund of arbitrage portfolios on 23 September, after nearly two years of planning.
The GAM Multi-Arbitrage fund will be managed by Dorothy DeWitt and David Smith, chief investment director of the group's multi-manager team.
DeWitt joined GAM earlier this year from Madaket Partners LLP, an event-driven hedge fund focusing on US and European equity arbitrage and relative value investment opportunities.
DeWitt said: 'We have spent a significant amount of time and resources researching and meeting managers worldwide who are specialists in this area. We believe we have identified the most talented managers in a number of different arbitrage strategies to include in the fund. Our outlook in these strategies is positive, both in the near and long term.'
Smith added: 'We see some extraordinary opportunities to invest in talented managers in arbitrage strategies. The difference between the average and the best in this sector of the hedge fund universe is at least as great as anywhere else. The best have been able to display consistently superior risk-adjusted return profiles in all market conditions.'
The fund will hold about 15 underlying portfolios and will aim for diversification through a blend of strategies and manager styles, such as fixed income arbitrage, merger arbitrage, distressed investing, convertible bond arbitrage, statistical arbitrage and volatility arbitrage.
The investment process will be a combination of top-down and bottom-up and will draw on the experience of GAM's multi-manager resources in London and New York.
The fund will have a minimum investment of $15,000, with higher liquidity than the general arbitrage market, according to the group.
Denominated in dollars, the fund is domiciled in the British Virgin Islands. There is a 5% purchase fee plus 1.76% annual management charge but no performance fee on the main fund. Fees on the underlying funds will vary.
Consistency and compliance vs. slower reaction time
Search for replacement to begin imminently
60+ £300bn ISA savings
Has technology moved on?
Total funds on list rise from 26 to 58