Collins Stewart Portfolio Management (CSPM) is to launch a Guernsey-registered, closed-ended fund of...
Collins Stewart Portfolio Management (CSPM) is to launch a Guernsey-registered, closed-ended fund of hedge funds, called the Collins Stewart Absolute Return fund.
The fund will be listed on both the Aim and Channel Islands stock exchanges.
The investment objective, strategy and policy of the Collins Stewart Absolute Return Fund Limited (CSARF) will mirror that of Collins Stewart Absolute Return Plus (CSARP), a multi-manager and multi-strategy, Guernsey-registered open-ended fund.
CSARF will be the first London-traded fund investing in third-party hedge funds not to levy an annual management fee. Only a performance fee will be charged, taken annually and calculated as 25% above Libor. That is subject to a high water mark of the investment performance on the previous year.
From 1 November 2002 to 31 July 2006, CSARP delivered an annualised return of 11.51%, according to Collins Stewart, and has featured in the top decile ranking in the InvestHedge Fund of Hedge Funds peer group over the period since CSPM assumed sole management.
CSARF will aim to deliver returns, in excess of Libor plus 6% per annum (net of expenses) over three-year rolling periods.
This will be achieved by a dynamic and active approach to global asset allocation, manager selection and portfolio construction.
It is intended that the portfolio will consist of between 30 and 40 individual hedge funds.
CSARF's lead manager will be Kevin Boscher who has 25 years' experience in the asset management industry, with particular expertise in the areas of asset allocation and multi-manager selection.
Boscher has been investing in hedge funds for more than 15 years and joined Collins Stewart in May 1996 as a director, with responsibility for establishing a fund of funds business. He also has responsibility for leading the team on CSARP.key points
Collins Stewart launches new fund of hedge funds
Mirrors Collins Stewart Absolute Return Plus fund
First of its type not to levy an annual management fee
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress