London-based Beach Horizon LLP, which recently gained FSA authorisation, launched its first fund, the Beach Horizon Fund, on 1 May with USD 13million.
The fund, which has a potentially larger exposure to commodities relative to other trend-based approaches, is based on Beach Horizon's diversified, systematic, medium-term trading program.
The program was developed by Paul Netherwood, Alan Goulding and Sanjeev Lakhanpal, under the auspices of David Beach, founder and chief executive of Beach Capital Management, the majority shareholder in Beach Horizon. Each of the three program developers has an equity stake in Beach Horizon.
The new fund has been paper trading in-house for the last two years and has been back-tested to 1981. During that time, it has produced simulated annual average returns of about 17 per cent net with standard deviation of around 15 per cent, according to the firm.
"I feel that the Horizon Fund complements Beach Capital's existing programs, and I am looking forward to adding it to our multi-strategy Beach Fund," said David Beach.
Initially the new product, which targets institutional investors, will have only a US dollar class, but a Euro class and a feeder for US investors will likely be added later.
The Cayman-domiciled fund has a minimum investment of USD 100,000 and fees of 2/20. Its capacity is estimated at between USD 500 million and USD 700 million. Beach Horizon is also open to managed accounts starting at USD 10 million.