Group looks to take advantage of large volume of merger and acquisition activity in europe
Platinum Capital Management has launched a Europe Select fund, which will be run by France-based hedge fund boutique Richelieu Finance.
The absolute return fund invests in European, principally French, companies.
Its objective is to achieve absolute returns with low volatility without geographical, sector or size constraints and to outperform traditional equity investments.
According to Craig Reeves, managing director of Platinum, the investment philosophy is driven by value investments, bottom-up stockpicking and in-house analysis.
He said: "At the moment, there is a lot of merger and acquisition activity in Europe. The fund will capitalise on all this action. Our particular strategy is to stock pick bold bracket companies that are going through some sort of financial transaction."
The fund will be mirrored on an existing vehicle managed by Richelieu, Reeve said.
This underlying fund has achieved an average annual return of 13.4% with standard deviation of less than 7% (12-month volatility).
The diversification of fund holdings includes 20% automobile, 16% energy and oil, 15% construction, 12% distribution, 10% banking and insurance, 9% real estate and hotels, 6% steel and raw materials, 6% other and 5% transport and aerospace.
Top holdings include car manufacturer Renault TP, French oil company Elf Aquitaine, steel company Arcelor and automotive equipment supplier Faurecia.
Domiciled in the Cayman Islands, the fund is available in euro, dollar and sterling share classes.
Minimum investment for all three dominations is 50,000 in any of the three currencies. Fees include an annual management charge of 1.5% and a performance fee of 15% of net profit.
Redemption fees are 6% in the first year, declining by 1.2% per year over five years.
Platinum launches an absolute return fund
Fund to invest in European, in particular French, companies
Fund is domiciled in the Cayman Islands
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