New subscriptions in January and February have seen the HSBC GH Fund increase its assets under management from USD 500 million to USD 600 million.
Subscriptions have been received across all currency classes of the fund including US Dollar, Euro hedged, Swiss Franc hedged and Sterling hedged, as well as into the leveraged class.
The HSBC GH Fund seeks to provide a total return from selective investment in a number of hedge funds, utilising and trading a range of different strategies and markets worldwide. The HSBC GH Fund also offers monthly liquidity with no redemption charge.
"The strong inflows that HSBC GH Fund has received, reflects the fact that it is a well established, globally diversified fund of hedge funds with a strong investment track record," said Paul Dunning, chief executive, HSBC Republic Investments Limited.
In November 2004, the alternative class of the All Points Fund of Funds became a feeder fund to the HSBC GH Fund, following the acquisition of Bank of Bermuda by HSBC in 2004.
Both the HSBC GH Fund and alternative class of the All Points Fund of Funds had similar investment policies, however the main change in the portfolio for existing investors of the HSBC GH Fund, was the modestly increased exposure to strategies, such as arbitrage and relative value strategies, that typically show lower volatility than other hedge fund strategies.
As at the end of January 2005, the portfolio consisted of the following strategies:
Equity long/short, High yield/distressed, Macro, Managed futures, Market neutral, Fixed income arbitrage and Multi-strategy/event driven.