UBS plans hedge fund style US large cap fund

The fund, thought to be called UBS US Equity Alpha, is believed to use leverage to position itself 130pc long of the market, partially hedged out by a 30pc short position achieved through derivative contracts. A July launch has been slated for the portfolio, which has been running successfully in a retail form in the US since last October. Prior to that the strategy was available to institutional investors and has close to $1bn under management. Digenan, manager of the long-only £667m UBS US Equity fund, will seek to generate alpha from selling short overvalued stocks and sections ...