Gartmore has launched its first healthcare hedge fund with a long/short equity strategy.
The AlphaGen Arneb Fund was first incubated in-house in December 2001 and has achieved a net return of 18% since its inception. As a result of this success, it was decided the product would be launched to investors. It is to be managed by San Diego-based Paul Cluskey.
According to Martin Phipps, head of hedge funds at Gartmore: "A non-directional investment style is used for the portfolio, similar to other equity long/short strategies in the AlphaGen range. Stock picking is purely bottom-up and stocks are selected on the long/short side depending if earnings are different from the price in the market."
There are currently around 48 stocks in the position, consisting of 28 long positions and 20 short positions. The focus is broad-based US healthcare, including biotech, medical devices and hospitals. It is the eleventh fund to be launched in the AlphGen range. The groups hedge fund business now stands at $3.5bn. The annual management charge is 1.5%. There is a 20% performance fee. It is available to high net worth individuals in both the US and Europe.
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