Oakley Absolute Return, a fund of hedge funds, has increased its assets under management by 75 per cent since formally opening to outside investors in January this year.
Oakley Absolute Return, a fund of hedge funds, has increased its assets under management by 75 per cent since formally opening to outside investors in January this year.
OAR is part of Oakley Capital Investments, a diversified asset management and financial advisory firm.
The fund is managed by Nick Hannan, formerly head of research at LCF Rothschild Asset Management, and Chris Parkinson, previously vice president of K2 Advisors.
OAR, which was seeded at launch with money from the founding partners, is now four years old. It began operations in July 2005.
OAR’s investment approach is based on capital preservation, while generating returns of eight to ten per cent a year with low volatility and little correlation to other financial products.
It invests across asset class, strategy, style and timing to create true diversification among a concentrated group of managers, with a bias toward emerging managers.
Since inception, OAR has had an annualised return of 8.15 per cent with an annualised standard deviation of 4.98 per cent (to end June, 2009). The fund’s team manages over USD175m in the strategy.
Hannan says: ‘The surge in assets, which has come from a number of sources, demonstrates that our approach appeals to a wide range of investors. Our strategy remains straightforward: delivering consistent absolute returns while remaining focused on capital preservation. This strategy should produce strong returns at a lower risk over the time frames relevant to our clients, particularly in a turbulent market environment such as the one we have experienced over the past 12 months.’
