Close Fund Management has successfully raised GBP145 million from the placing of its new multi-asset class FoHF tailored for UK investors.
The successful placing of AllBlue Limited, a multi-strategy fund of hedge funds which will be managed by BlueCrest Capital Management L.P. (BlueCrest), the alternative asset management business, brings the totals assets raised by London-based Close Fund Management for its range of UK hedge funds to over GBP 230 million since June 2004.
Marc Gordon, Managing Director of Close Fund Management, said: 'This achievement reflects the growing demand for hedge funds and alternative investment products in the UK marketplace. This is reinforced by the current equity market volatility, which represents an excellent buying opportunity for hedge fund investors'.
'By launching Close AllBlue Fund Limited with BlueCrest we are offering investors the next generation of fund of hedge funds products. BlueCrest's global expertise and presence has delivered consistently strong performance with appropriate volatility. The extremely positive response to this product is, in part, directly attributable to BlueCrest's continued investment in risk management and their investment style, which is based upon that of an investment bank'.
'Given the strong track record of BlueCrest, the level of assets we have raised which makes Close AllBlue one of the biggest funds in its sector, and the demand for hedge fund products from UK investors, we are very positive about the outlook for Close AllBlue Fund.'
Close AllBlue Fund Limited offers, via AllBlue Limited, access to a portfolio of seven diversified strategies managed by BlueCrest and managers with close links to BlueCrest. Close AllBlue Fund Limited offers access to this portfolio in a format not otherwise available to the general investment community.
BlueCrest manages a highly diversified group of funds with approximately USD 10.7 billion of assets under management (estimate as of 1 May 2006), which are widely accessed by institutions, fund of funds and professional investors. The NAV per share* of its flagship fund - BlueCrest Capital International Limited - has increased from USD 100 at launch to an estimated USD 203.43 as of 13 April 2006.
The Close AllBlue Fund Limited combines a key range of features specifically designed for the UK market:
- Diversified investment. Close AllBlue Fund Limited has via AllBlue Limited exposure to a blend of seven investment strategies and styles. These include the BlueCrest flagship fund with a mixed arbitrage strategy (BlueCrest Capital International Limited), BlueCrest Equity Fund Limited (an equity long/short fund), BlueCrest Emerging Markets Fund Limited (an emerging markets macro strategy) and BlueTrend Fund Limited, offering a systematic trading process.
- Consistent level of return with controlled risk. AllBlue Limited targets annualised absolute returns of 12%-14% and target annualised volatility of 6%. Allocations between the underlying funds comprising the portfolio is undertaken by a commitee of BlueCrest principals.
- Designed for UK investors. One share class of Close AllBlue Fund Limited is denominated in sterling (with further USD and Euro share classes available), the sterling shares are PEP/ISA able and Capital Gains Tax assessable.
Michael Platt, Director and Co-Founder of Bluecrest Capital Management Limited, said: 'We are delighted with the substantial level of assets raised, demonstrating why we were very keen to work with Close in their offer to UK investors of the opportunity to access a BlueCrest managed fund in this format for the first time. We've worked hard over the past five years to establish BlueCrest as an asset management business and are pleased that this launch has given us another opportunity to further demonstrate our skill at managing performance and volatility.'
Background notes: BlueCrest Capital Management L.P. was founded in 2000 by Bill Reeves and Mike Platt with an initial USD 117million of assets under management. BlueCrest is 75% owned by its principals and 25% owned by Man Group plc. BlueCrest has approximately 157 employees of whom 37 are principals located in London and Newport Beach. Blue Mountain Capital Partners LLC, an investment manager with economic links to BlueCrest and its principals has approximately 65 employees located in London and New York. In aggregate, BlueCrest and BlueMountain have over USD 11 billion of assets under management.
Close Fund Management is the specialist fund management subsidiary of Close Brothers Group plc, now the UK's largest quoted Merchant Bank and among the 250 largest companies listed on the London Stock Exchange. Close Fund Management was founded in late 1995 to provide specialist investment management services to the retail and institutional market. It is authorised and regulated by the Financial Services Authority.