Odey Asset Management is to launch a European Absolute Return fund for manager Feras Al-Chalabi later this year.
The fund house is continuing its expansion plans by extending Al-Chalabi's responsibilities to encompass a new absolute return vehicle. It will sit alongside his top-performing Continental European and offshore European Allegra vehicles.
Scheduled to launch in early December, subject to regulatory approval, the Odey European Absolute Return fund is the latest expansion of Odey's long/short range.
The boutique launched the Swan fund, a global long/short, UCITS-compliant version of founder Crispin Odey's (pictured) flagship hedge fund, in March.
Demand for its other long/short vehicles subsequently saw the group soft-close James Hanbury's £837m Absolute Return fund in July.
With stock performance becoming less homogeneous as macroeconomic concerns take a back seat in 2013, equity long/short has been among the top-performing alternative UCITS strategies since the start of the year.
The Absolute Hedge Equity Long Short index is the best performing alternative UCITS benchmark year-to-date with a return of 7.7% as of 30 September, according to European fund platform Alceda.
Al-Chalabi said earlier this month current conditions represent a "powerful opportunity set for the dedicated European stock picker".
Although his new fund will see him take short positions for the first time, he remains of the belief that "a multi-year bull market in European equities beckons".
Al-Chalabi's Odey Continental European fund has returned 36.7% over the three years to 18 October, according to Morningstar, compared with an IMA Europe ex-UK sector average return of 27.5%.
Over one year the fund has returned 40.9% compared with a sector average of 26.8%.
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