HSBC has launched a High Net Worth & Institutional share classes for the HSBC Next Generation Fund.
The HSBC Next Generation Fund invests in new and upcoming hedge fund managers globally aiming for an annualised target return of 12% to 15% over a market cycle with target volatility of 8% to 10%. The Fund offers monthly liquidity.
The HSBC Next Generation Fund is a concentrated portfolio comprising of 10 to 15 emerging managers investing across all hedge fund strategies. The underlying managers must have sound industry reputation and a proven track record at investment banks and established hedge funds. Initial investments include new funds Avantium Liquid EM Macro managed by Kay Haigh and Apson Global Fund managed by Edouard Salet.
Initially launched in September 2011 to Founder Investors the HSBC Next Generation Fund has approaching USD100million in assets under management.
The HNW share class welcomes investments of USD 25,000 / EUR 25,000 and above. The Institutional share class has a minimum investment threshold of USD 2,500,000.
Evidence of successful “Day 1” or early stage investing includes Brevan Howard, Lansdowne UK and DE Shaw Oculus, all of whom are now established industry participants and mostly closed to new investment.
Peter Rigg (pictured), Global Head of HSBC’s Alternative Investment Group says: “HSBC has been researching emerging managers for many years, and we have an established track record of investing in some of the best new managers in the industry. This Fund provides our clients with direct access to a new generation of hedge fund managers combined with our proven track record in due diligence and portfolio management.”