Old Mutual Asset Managers (UK) is planning to launch a new global equity long/short hedge fund in May 2006.
The Old Mutual Global Sector Opportunities Fund will be managed by OMAM's highly successful Quantitative Strategies team, manager of OMAM's global equity market neutral strategy, which has now closed with assets of around USD 1.7 billion.
The new fund will trade globally in liquid stocks in developed markets, using a sophisticated, proprietary quantitative model to compare stocks within the same sector across regions in order to exploit pricing inefficiencies. Unlike the existing strategy, the new fund will incorporate an element of directionality.
The fund will typically contain between 200 and 300 stocks selected from the MSCI World Enhanced Index of over 3,200 stocks, which covers over 90 per cent of global market capitalisation within the major developed markets of the US and Canada, UK, Europe, Japan and Asia (Australia, Hong Kong, New Zealand and Singapore).
'We're delighted to be able to offer a new hedge fund managed by our very successful and highly regarded Quantitative Strategies team,' says Peter Baxter, Chief Executive of OMAM (UK). 'The Old Mutual Global Sector Opportunities Fund represents an exciting development for OMAM, employing the investment team's proven research process and portfolio management expertise to build diversified portfolios on a global sector basis.'
Eoin Murray, OMAM's Head of Quantitative Strategies, adds: 'With our global equity market neutral programme approaching USD 2 billion, the launch of this new global sector fund represents a significant step in the development of the Quantitative Strategies product platform. The new fund exploits the team's core, proven investment process but adds a new dimension in terms of a sophisticated return, forecasting model for analysing stocks on a global sector basis. Furthermore, unlike our existing strategy, the new fund includes a degree of directionality. Our back testing shows there are significant pricing inefficiencies to exploit using this approach.'
The fund will be Cayman-domiciled and Dublin-listed, with sterling, dollar and euro share classes, while the minimum subscription will be GBP 100,000, GBP 100,000 or EUR 100,000 with an annual management charge of 1.5 per cent and a 20 per cent performance fee.
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