Gam launches a market neutral asian fund which aims to outperform the MSCI Asia ex-japan index
Global Asset Management (GAM) has launched an Asian hedge fund, managed by John Mytton, GAM's investment director responsible for Asia ex-Japan investments.
The dollar-denominated GAM Asian Hedge Fund will be broadly market neutral with an occasional long or short bias. Its objective is to outperform the MSCI All Countries Asia Pacific (Free) ex-Japan Index, with significantly lower volatility and risk.
Mytton and the investment team follow a top-down macro approach to determine country and sector exposure. The portfolios will contain mainly large- cap stocks.
He said the long-only portfolio mirrors the best selections of the long-only Asia ex-Japan funds he currently manages. The short portfolio will be confined to liquid markets where borrowing stock or index futures can be used for shorting or hedging purposes.
The charges on the GAM Asian Hedge Fund are 5% initial and 1.5% annual. The annual performance fee is 20% of the net realised and unrealised gain for the year. Minimum investment is $15,000.
Meanwhile, GAM is to register its American Star Focus fund in the new markets of Germany, Switzerland and Austria, early in 2002.
The fund managed by James Abate, formerly manager of the CrÃ©dit Suisse Transatlantic fund, now has a sterling and dollar share class and will include a euro share class early this year (2002).
Shares in the fund, are already registered for sale to the public in the UK, Germany, Austria, the Netherlands, Hong Kong, Macau, Sweden and Switzerland, but GAM is extending the reach of the new fund, launched in September 2001.
Within the portfolio, Abate said the emphasis of his stock selection is shifting toward more cyclical companies.
'Despite the recent rally in stock prices, we now feel that the negative influences on risk premium have been fully priced into equity valuations, but anticipate some pullbacks in the very near term,' he said.
The more aggressive, capital growth stocks provide a better risk/reward ratio, given the significantly low valuations of this group of stocks, according to Abate.
The largest single holding in the fund, which has a large- cap bias, is Hewlett Packard at 5.2%, followed by Coca- Cola at 4.7% and Walt Disney at 4.5%.
Others include SBC Communications (4.2%) and Boeing and Campbell Soup, which each represent 3.9%.
Advanced Micro Devices, McDonalds, Williams Companies and Kelloggs are also listed in the portfolio's top 10 holdings, each representing between 3.7% and 3.2%.
Minimum investment in this fund is $5,000, E 5,000 or £3,000.
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