Cazenove Capital Management is launching a new equity long short global macro fund at the end of May 2006, to be managed by Tim Love.
Love joined Cazenove Capital in January 2006 from Deutsche Bank where he was number one rated by Institutional Investor for both emerging markets and global strategy in four of the last six years. He has over 20 years of experience including fund management roles with HSBC Asset Management and Mercury Asset Management followed by senior strategy positions at ING Barings and latterly Deutsche Bank, advising the world's leading institutional investors. This combination of experience places him in a perfect position to manage the new fund.
The objective of the new Cazenove Worldwide Absolute Return Fund is to achieve a minimum 15% p.a. absolute return (net of fees) with anticipated volatility of 10-15%.
Cazenove Capital stated: 'The Fund has generated considerable interest in London, Europe and the Middle East, with investors finding Tim's process and approach very different to other global fund managers. The Fund seeks alpha through identifying opportunities from global structural changes; in particular themes arising from developing economies. These themes can be both macro and secular'
However, as Love says (see following additional Comment by Love): 'Investing directly in emerging markets is only half the story. Significant opportunities arise, and will do for many years to come, from the impact on developed markets of the growth of emerging economies. Our approach combines emerging and developed markets in a series of long and short positions to deliver more opportunities'.
The fund will be launched on 31 May 2006. Love will seek to be broadly diversified in respect of geography (maximum 20% in any single emerging market), sector and individual names (maximum 8% in any single long position and 4% in any short position) and will usually hold 60 to 100 positions. The Fund is expected to have low correlation and low beta.
Robin Minter-Kemp, Managing Director at Cazenove Capital commented, 'We think that the strategy, together with the proprietary research that supports the process, make this approach unique. It is becoming obvious that this global macro Fund will meet asset allocation needs by benefiting from new world economies but without the associated emerging market volatility'.
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