Independent asset manager Henderson Global Investors has launched the Global Equity Multi-Strategy hedge fund.
The fund will invest in global equity and equity derivative markets via multi-strategy portfolios covering Pan Europe, North America and Asia Pacific to provide exposure to the alpha generated by the three regions.
The Global Equity Multi-Strategy Fund will complement existing regional Multi-Strategy Funds that are operating in Europe and North America. Henderson launched the Pan European Equity Multi-Strategy Fund in December 2003 and the North American Equity Multi-Strategy Fund in May 2005; both of these funds have generated annualised returns of around 8 per cent. This range of regional funds will be completed by the rollout of the Asia-Pacific Equity Multi-Strategy Fund, which is scheduled for launch 1 July 2006.
The Global Equity Multi-Strategy Fund will use a 'pure alpha' strategy and have an absolute return objective. It will target 10% volatility, leveraging the existing regional funds investment processes in order to drive high returns. Opportunities tend to be independent of market direction so the fund will be broadly market neutral.
The fund, which launched with assets of more than USD 200 million, will be managed by a team led by David Elms, head of multi-strategy equities at Henderson, who will also be responsible for investing the Pan European element of the fund. Robert Villiers and Indaka Nanayakkara will be responsible for the North American and Asia Pacific elements respectively.
'Henderson has impeccable credentials when it comes to managing multi-strategy equities having first pioneered the approach in the 1990's for clients within its long-only business,' says Kate O'Neill, director of hedge funds. 'Today the 22 strong global team are responsible for over USD14 billion assets.
'Within the simplicity of a single wrapper the fund aims to generate a balanced alpha across global regions and a set of proven strategies, namely Relative Value, Event Driven, Fundamental and Liquidity.
'This is the 13th hedge fund that Henderson has launched. We have been steadily developing our absolute return range, capitalising on existing capabilities where we think we can bring to market truly top class hedge funds for clients.'
The fund is part of Henderson's USD 2.5 billion single manager hedge fund range spread across 13 hedge funds which are split into four pillars: Long short directional equity funds; Equity multi-strategy funds; Equity Long Short Style Rotational funds; and Fixed Income multi-strategy and single strategy.
Domiciled in the Cayman Islands, the new fund will be listed on the Irish Stock Exchange and will have three share classes - US Dollars, Euros, and Pounds Sterling. The minimum initial lump sum investment will be USD 100,000 or its equivalent and there will be a 2.0% annual management charge with a 20% net performance fee.