offer will enable investors to build a basket of five to 10 hedge funds
Barclays Capital is to offer clients call options to buy bespoke baskets of hedge funds.
Through buying an option, clients can build a basket of between five and 10 hedge funds from those listed on the Barclays' HFR Manager Select platform. It currently lists more than 100 hedge funds, which cover a range of strategies.
Barclays Capital said the product provides high net worth individuals with access to specific hedge funds, allowing them to build a concentrated basket or gain exposure to a particular strategy.
The options are available in euros, dollars, sterling, yen and Swiss francs, with a minimum dealing threshold of $500,000 (£257,750). They will initially have maturities from between three to five years.
Frank Gerhard, head of fund linked derivatives product stra-tegy at Barclays Capital, said: "The creation of new derivatives products is particularly important in a market where tactical investment in structured products linked to concentrated hedge fund baskets is still hampered by slow turn-around times and cumbersome negotiations. We are confident that a flexible and more efficient solution will be extremely attractive to investors."
Antti Suhonen, head of fund linked derivatives structuring at Barclays Capital, added: "This new initiative on the Manager Select platform is a natural continuation of our efforts to add transparency, liquidity and investor choice in the alternative investment market by extending the availability of option products to more focused strategies in line with the shifts in investor demand that we are witnessing."key points
Barclays Capital to offer clients call options on bespoke hedge funds
Minimum investment is $500,000 (£257,750)
Options have maturities of between three to five years
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