Tilney Asset Management is launching two Bermuda-based funds this month, a fund of hedge funds and a...
Tilney Asset Management is launching two Bermuda-based funds this month, a fund of hedge funds and a residential property fund.
The Opal Alternative Growth will be open to investment at the beginning of January and the Opal London Town Property will be open to investment near the end of the month. Both funds will target high net worth offshore investors.
Opal Alternative Growth will be listed on the Irish Stock Exchange. The fund will be managed by Tilney while the screening process will be carried out by Tremont Advisers. The portfolio of the fund will comprise a minimum of 10 hedge funds with not more than 10% holding in each fund. It will also not hold more than 10% of the asset value of any hedge fund. The underlying funds will be selected according to their track record.
'A significant proportion of the fund will be driven by correctly identifying mismatches between derivatives and the underlying investment on which they are based rather than calling market direction,' said Ian Beestin, head of marketing at Tilney. 'Tremont Advisers will mainly help us to monitor performance of hedge funds and will help us in our selection process,'
Commenting on the underlying strategies that the fund will invest in, Beestin said: 'We see very little opportunity in risk capital gain strategies at present and will be concentrating mainly on merger arbitrage strategies.'
The Opal London Town Property will also be managed by Tilney and have London Town, the property developers, as advisers to the fund. The fund will invest in developments in London and the south-east region concentrating on property that can be converted into one or two bedroom apartments. The return on the fund will be generated from the rental or sale of these properties.
The charging and commission structures of these two funds are yet to be finalised but investors can expect them on the market by January.
Eight-week high against US dollar
Lower cost option for advisers
Following 2016 thematic review
December 2018 or early 2019
Feasibility study due