Abbey National has launched the first of its three hedge fund vehicles, with which it hopes to rais...
Abbey National has launched the first of its three hedge fund vehicles, with which it hopes to raise an estimated $2.5bn from investors, writes Robert Maharajh.
The first launch, issued by subsidiary company Talorcan, is Equity Pairs Plus, which will combine mainly pan-European market neutral equity pairs with an actively managed long- premium option portfolio. It will be run by Claire Bowman, formerly part of the Abbey National Asset Management team.
The next launches in the series will be the Talorcan Forex fund, in which manager Adrian Cunningham will establish positions in currency pairs in both developed and emerging markets. It will aim to deliver above average returns relative to the level of risk created and independent of the general direction of equity and bond markets. This fund will be capped at around $500m.
Most intriguing of the three launches is a planned global macro vehicle, to be run by Scott Jamieson. Talorcan Global fund will invest across the range of the world's major capital or derivative markets, investing in stocks, bonds, currencies and commodities. Jamieson has been responsible for global bond, currency, equity and derivative markets for Abbey National Asset Managers since 1985, most recently as global head of investment strategy.
As well as managing a tactical asset allocation overlay to investment mandates worth over $20bn in total, Jamieson created and ran the retail- oriented Safety Plus/Controlled Risk fund which grew to over $1bn in three years.
Graham Pottinger, managing director of Abbey National Life Division, said: 'We are launching these funds to broaden and deepen the range of investment products and management services offered by Abbey National. While alternative investment funds are currently a comparatively small part of the overall investment universe, the uncertainty over stock market returns is likely to ensure growing investor interest in the attractions of absolute returns in a risk controlled environment.
We expect to see assets dedicated to these products increase substantially as a proportion of investment funds over the next few years.'
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