Investec Asset Management is launching its first single strategy hedge fund on 2 January 2003. Th...
Investec Asset Management is launching its first single strategy hedge fund on 2 January 2003.
The Invar Macro Bond fund is aiming for 15% returns after fees, with a volatility of 10%. It will be managed by the group's global bond managers Paul Griffiths and Kieron Nutbrown.
David Aird, joint managing director at Investec Asset Management, said: 'We will not be trading instruments we don't understand. That is why this is not a global macro fund.
'In some cases, we will be doing exactly what the in-house fixed income desk does. For example, if they are long duration on US Treasuries, we will stick with that position as well.'
The fund has a minimum investment of $100,000 and will be seeded with $25m-$30m. The fund has no investment ceiling, although Aird said it may take a breather at $100m.
'Ultimately, when you are trading G7 economy bonds, which are very liquid, capacity is not really an issue, but I think we will take a pause at a certain point,' he added.
'This fund will not be interested in playing instruments like mortgage-backed securities or underlying credit issues. If we do trade credit spreads, it will be using swaps.'
Leverage, risk management and performance attribution will also be significant to the Invar fund according to Aird, for which the maximum gearing will be five times its equity.
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