Harcourt launches multistrategy emerging markets fund of hedge funds
Harcourt Investment Consulting has launched Belmont (Lux) Global Emerging Markets, a multistrategy fund of hedge funds dedicated to harnessing the opportunities presented by hedge funds focused on emerging markets.
Harcourt says the fund affords efficient exposure to emerging markets globally through a well-diversified portfolio of managers and strategies. It argues that the growth outlook for emerging markets countries remains strong, and 'the well-publicised decoupling story is real'.
Consequently, local hedge funds are able to generate returns that are largely uncorrelated to other regions. At the same time, the inefficiencies that characterise emerging markets generate ample opportunities for hedge funds to achieve superior risk-adjusted returns.
Harcourt has been investing actively in emerging markets for 10 years. Belmont (Lux) Global Emerging Markets joins a range of funds focused on specific regions, currently comprising Belmont Asia, Belmont Europe and Belmont Latin America.
Belmont (Lux) Global Emerging Markets seeks to derive attractive returns and reduce risk by investing in multiple strategies associated with emerging markets. With its broad diversification among asset classes, regions and hedge fund strategies, the fund seeks an overall low risk profile, and to generate far less volatility than is common with long-only emerging market investments.
Market risk and other inherent risk factors, such as liquidity risk, are minimised through manager selection. The fund targets an annualised return of Libor plus 400 basis points net of fees, with 6 per cent annualised volatility, and currently has 29 hedge funds in its portfolio.
Founded in 1997 and majority-owned by Swiss private bank Vontobel Group, Harcourt is a provider of alternative investment solutions for institutional investors with headquarters in Zurich and offices in New York, Hong Kong, Stockholm, Madrid, Geneva and Cayman Islands. The company manages USD5.5bn, exclusively in alternative investments, and employs a staff of 90 professionals.
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