GAM has launched a new fund of European hedge funds following the style of Multi-Europe dollar and eu...
The new launch, Multi-Europe II, follows the closure to new investments of the initial Multi-Europe offering, due to many of the underlying funds having closed to new investments. Multi-Europe's assets trebled in value last year and to cope with new inflows, it would have had to dilute its core holdings.
Multi-Europe achieved a compound growth rate of 55.9% over the 12 months to 29 May as against the MSCI Europe's 12.7%.
GAM's multi-manager group covers a universe of over 56,000 funds and has 25 members.
Sue Neal, marketing director at GAM, said: "Multi-Europe II will be constructed along similar lines to its predecessor and the strategies of the two funds will be closely correlated. We also expect that there will be some overlap between the underlying funds held in both portfolios."
The new fund's portfolio is structured using a combination of equity hedge and long-only funds, with around 60% with equity hedge managers and 40% with long-only managers.
There are rigorous on-going risk-control processes, according to Neal said.
He said: "We do in-depth due diligence in manager selection and have ongoing contact with managers of underlying funds. There is also continuous quantitative analysis of the portfolio."
The core holdings consist of four equity hedge vehicles and one long-only manager.
‘Important to have an anchor’
Lack of innovation for solutions
Some 2,000 consumers affected
Achievements, charity work and other happy snippets