Gam and Cazenove Capital management are to launch products linked to fund of hedge funds (FoHF) styl...
Gam and Cazenove Capital management are to launch products linked to fund of hedge funds (FoHF) style strategies.
Cazenove will launch a closed-ended portfolio, to be listed on Aim, exposed to three of its hedge funds, run by Tim Russell, Chris Rice and Neil Pegrum. This has the ability to add further mandates at a later stage.
At the outset, the Cazenove Absolute Equity Limited (Cael) fund, will have an initial asset allocation of 35% each to Russell's UK Equity Absolute Return fund and Rice's European Absolute Return fund, with the remaining 30% weighted to Pegrum's UK Dynamic Absolute Return offering.
Cazenove's chief investment officer Anne West is responsible for monitoring the blend, which aims to deliver net returns of 10% a year with volatility between 2% and 4%. She will make adjustments on a quarterly basis.
Of the three strategies used, Russell's and Pegrum's fund are closed to new money, with Rice's having reopened in August, but due to close again at the end of the year.
While each would normally require a minimum entry level of $100,000, Cael offers access to all three for a minimum investment of £5,000.
Meanwhile, Gam and Barclays are to launch a product linked to the Gam Diversity FoHF. The medium-term note, issued off a Barclays Bank structured note programme, will have a six-year term with performance linked to Gam's 17-year-old FoHF.
Gam Diversity typically invests in more than 40 underlying hedge funds and gives investors access to long/short trading and arbitrage strategies.
Barclays Capital said the note offers investors portfolio diversification, because Gam Diversity has a low correlation to traditional equities and bonds.
It also gives clients daily liquidity, while the product only offers monthly liquidity if bought direct. Minimum investment is £50,000.key points
Cazenove and Gam to launch products with FoHF strategy
Cazenove fund aims to deliver net returns of 10% a year
Gam joins forces with Barclays to offer medium-term note
Will assess regulation
Client was warned of risk
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