London-based Gulf International Bank (UK) Limited has restructured its hedge funds range and is planning to launch two multi-strategy hedge funds.
GIB's Falcon Relative Value Fund, launched in May 1999, has been re-launched as a multi-strategy equity hedge fund with over USD 80 million in assets. The fund now offers US dollar, Euro and Sterling participations with the US dollar shares class offering two fee structures - a 1% investment management fee and 20% performance fee or a 0% investment management fee and 30% performance fee.
The fund, which previously ran three market neutral strategies, has now adopted five further strategies that had been run either as managed single strategy hedge funds or as alpha strategies applied to GIB's enhanced indexed portfolios.
Aftab Hussain, Fund Product Manager, said: "The re-launched fund allows for further diversification of risk and increases the availability of relative value trading opportunities, enabling the managers to deliver enhanced returns to investors."
He added: "This multi-strategy approach, and GIB's continued investment in the strategies, allows investors to share in GIB's trading and risk management resources which are dedicated to delivering consistent returns in a controlled environment."
GIB's Equity Markets team will manage the eight strategies in the fund and may also introduce further strategies in due course.
As part of the restructuring of its hedge fund activities, GIB will close the existing single strategy funds and fold them into the re-launched RV fund. These include the Falcon US Long / Short, Falcon European Long / Short and the Falcon Convertible Arbitrage Funds. All 3 funds have solid, consistent track records.
At a later date, and in line with this strategy, GIB will also be rolling out two other multi strategy hedge funds, based on credit arbitrage and managed futures strategies.
Background Note: The Falcon Relative Value Fund was launched in May 1999. The Fund is Cayman domiciled and listed on the Irish Stock Exchange. Since inception the Fund has achieved an annualized return of +12.33% with low volatility and a drawdown of 4.35%.
Gulf International Bank B.S.C. was established in 1975 in the Kingdom of Bahrain. With consolidated group assets in excess of USD 15bn and a capital base of over USD 1.1bn it is one of the largest financial institutions in the Middle East.
Gulf International Bank (UK) Limited is regulated in the UK by the FSA and is a wholly owned subsidiary of GIB B.S.C. GIB (UK) has been managing client assets for over 20 years and has over USD 11bn of client assets under management.