Thames River Capital has launched a Ucits III absolute return fund of funds with GBP47m already raised.
The Thames River Absolute Return Fund will be managed by alternatives specialist Ken Kinsey-Quick and assistant fund manager James Rous.
The fund will invest on a global basis, across multiple asset classes with a bias towards more liquid asset classes and the developed world.
Initially the portfolio will be biased toward market neutral equity and macro funds reflecting the team’s outlook for equities which, they believe, will struggle to break their 2007 highs, and that volatile financial markets will suit macro managers.
The fund has a target return of five to ten per cent with a five per cent volatility target and weekly liquidity.
The fund will aim to outperform global bonds as measured by the Barclays Aggregate Bond Index and will invest in a diversified portfolio of 20 to 40 absolute return funds with allocations of between one and five per cent of NAV. These include equity long-short, global macro, convertibles, credit, event driven and emerging markets long-short.
Thames River investment director Michael Warren says: “Markets have rallied aggressively since their 2009 March lows but many investors missed the rally and remain nervous about investing post the upturn in the market whilst the return on cash is almost negligible. This fund offers a suitable low risk alternative to the more cautious investor. As investors seek a higher return on their money, we believe the Thames River Absolute Return Fund can offer investors a well diversified, low volatility fund investing in funds managed by a growing pool of blue-chip managers in the absolute return sector.”
