Investec Asset Management has launched the second tranche of its fund of hedge funds.
With the Investec Absolute Return Fund Series II, Investec allocates the management of the fund to the Paris-based Olympia Capital Management, a specialist hedge fund-of-funds manager.
Olympia has experience of analysing hedge fund managers worldwide and its flagship fund ' the Olympia Star Series ' has, over the last 10 years, achieved an annual compound return of 12.47% after all fees.
The Investec Absolute Return Fund Series II aims to achieve returns of between 5% and 8% in excess of US dollar cash returns over a rolling three-year period with relatively low volatility.
A clear advantage of the Investec Absolute Return Fund over its competitors is that the fund does not charge investors an annual performance fee.
The Guernsey-domiciled fund deals monthly with a minimum investment level of $10,000.
'Its sister fund, the Investec Absolute Return Fund Series I, raised over $180m and has built up a strong performance track record,' said David Aird, joint managing director of Investec Fund Managers.
He added that during 2002 the fund achieved positive returns of 3.7%, compared with the HFRI Hedge Fund-of-Funds Index which rose 1.1% and the average offshore US dollar money market fund which rose 1.2%.
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