Old Mutual launches global stat arb fund
Old Mutual Asset Managers (UK) (OMAM) has announced the launch of the Old Mutual Global Statistical Arbitrage Fund, a specialist fund which leverages OMAM's statistical arbitrage capabilities, on 1 June with a minimum initial capital of USD 25 million.
The fund will be managed by the same team that manages the Old Mutual European Statistical Arbitrage Fund, which was launched in May 2006.
The fund will be managed using highly developed systematic techniques that exploit short term pricing anomalies. It will trade in the most liquid stocks globally, using a sophisticated proprietary quantitative model to compare stocks within the same sector across all regions in order to exploit pricing inefficiencies. The fund will typically contain approximately 850 stocks selected from the S&P Global 1200 Index of developed global markets.
Eoin Murray, OMAM's Chief Investment Officer, said: 'The launch of the Old Mutual Global Statistical Arbitrage Fund adds further diversification to our hedge fund range and complements our existing offering within this area of the market. The fund will be managed by Paul Simpson and John Dow, both of whom have extensive expertise and experience of arbitrage strategies and I have every confidence that they will be able to replicate the success that they have enjoyed with the European strategy.'
The Old Mutual Global Statistical Arbitrage Fund will be domiciled in the Cayman Islands and listed on the Irish Stock Exchange. It will be denominated in US dollars, with a minimum initial investment of USD 100,000. The fund will carry an annual management fee of 1.5% and a performance fee of 20%. The prime broker to the fund will be Merrill Lynch.
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