The board of closed-ended multistrategy fund of hedge funds FRM Diversified Alpha has announced that it has received subscriptions totalling GBP61,835,677 through its share placing and offer, following the fund's listing on the London Stock Exchange.

FRM Diversified Alpha aims to generate significant returns over cash, with low volatility and low beta to global equity and credit markets over an economic cycle, by investing in a diversified portfolio of hedge funds following strategies including equity long/short, specialist credit, relative value and directional trading.

The board says the listed fund's Guernsey-based manager, FRM Investment Management will construct and manage its portfolio in a manner consistent with FRM's established diversified strategy, which is supported by FRM's global investment team of around 45 professionals.

FRM began managing diversified-style funds of hedge funds in January 1998 and currently manages more than USD10bn in this strategy for institutional investors, including around 300 pension funds.

"We are extremely pleased at this opportunity to provide investors with access to our flagship diversified strategy through the listing of the company on the London Stock Exchange, which is emerging as the leading market for listed hedge fund products," says Paul Dunning, chief executive of Financial Risk Management, the group's UK-based investment adviser.

"Diversified appeals to investors looking for an equity or fixed-income substitute, due to its ability to produce consistent absolute returns in various market environments. We are looking forward to taking advantage of quality capacity with a range of premier hedge fund managers on behalf of FRM Diversified Alpha investors."

Founded in 1991 by Blaine Tomlinson, the FRM group has more than USD15bn billion in fund of hedge funds assets under management and more than 200 employees at its offices in London, New York, Tokyo, Hong Kong, Sydney and Guernsey.