New Star Asset Management has raised USD 166 million from the initial launch of its Multi Strategy funds.
New Star Multi Strategy is managed by Charles Tritton, New Star's head of alternative investments. It seeks to generate alpha through active stock picking on both long and short positions but with a limited market exposure. The typical portfolio composition is expected to provide diversification across approximately 40 industry sectors and in excess of 500 individual positions.
New Star Multi Strategy is targeted at institutional investors and sophisticated and high net worth individual investors.
Ravi Anand, New Star's head of structured products, said: 'New Star Multi Strategy brings together all of New Star's hedge fund talent in one fund. The strategy benefits from active management at all levels, a focus on risk management and only a single layer of fees. The strategy has received an encouraging initial response from investors and we expect to attract further interest over time.'
Three vehicles, accessing different distribution channels, have been simultaneously launched to invest in New Star Multi Strategy; a London listed investment company, an open ended Cayman mutual fund and a vehicle launched jointly with Credit Suisse International, allowing the creation of structured products based on the strategy. Demand for each of these vehicles is expected to grow over time.
The funds invest in the same multi strategy process of active allocation to a range of New Star hedge fund strategies on a risk budgeted basis.
At 11 August 2006, New Star managed USD 1.7 billion of hedge fund assets in nine hedge fund strategies, managed by 15 experienced fund managers with an average hedge fund investment experience of 5 years.