New Star Asset Management is planning to launch a pan-European long/short hedge fund next month, wri...
New Star Asset Management is planning to launch a pan-European long/short hedge fund next month, writes Robert Stock.
The New Star European hedge fund, for which a closed offer period of 17 September to 30 November has been set, will be managed by the team of Alan Miller, Tim Steer, and Richard Pease.
Steer, who joined New Star earlier this year from Merrill Lynch, where he was a sell-side analyst, works with Miller on the New Star Hedge Fund and is credited with having brought the fund the ability to short stocks. Miller had previously specialised in shorting markets.
The launch will bring the number of hedge funds managed by the group to four, including two WorldInvest hedge funds: the Asia Renaissance Fund, a long/short Asia including Japan equity portfolios managed by Michelle Sunders, Ian Beattie and Alastair MacGregor, and the European Special Situations hedge fund managed by Richard Lewis and Tim Bray. The launch of the new hedge fund is just one of a number of moves which New Star has planned in the coming months.
These include re-branding the institutional WorldInvest, which New Star acquired in December 2000 as New Star Institutional. This area provides a significant part of the group's current £1.8bn of assets under management. Already one of the two WorldInvest Sicav ranges of retail funds, which together contain 22 equity and bond sub-funds bears the New Star brand.
The onshore WorldInvest Oeic with a UK Special Situations, European Special Situations and UK Income sub-fund is also likely to be rebranded under the New Star banner, although what use the group will put the Oeic to has yet to be decided. According to Philip Goldsmith, managing director for international sales and marketing at New Star, no decision has been taken on whether the two Sicav ranges, which have about $30m in total assets under management, will be actively marketed.
The Sicavs will remain on the backseat until after the launch of the European hedge fund and the launch of a five-year 100% capital protected hedge fund product packaging Alan Miller's New Star Hedge Fund as the underlying investment.
The group is also planning to set up offshore mirrors of the New Star European Growth and New Star UK Growth funds.
Plans on the UK retail front are the launch of a UK mid and small cap fund with a special situations flavour.
The fund is to be managed by Tim Steer and the New Star Income fund by Toby Thompson, which will not happen until Thompson joins the firm from Newton, which may not be until January.
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First mentioned in Cridland Report