London-based AltEdge Capital (UK) Ltd, the FoHF manager, has launched a fund of hedge funds tracker within a Barclays SIMPLE Note. The Barclays-developed SIMPLE Note potentially offers onshore UK-based investors similar tax benefits to an investment in a listed fund.
Currently there are limited options for on-shore investors to access the fund of hedge fund market combining all of the important characteristics of performance, risk, tax treatment, liquidity and dealing at NAV. Though not suitable for the retail market, it is targeted at the professional market via investment managers, independent financial advisors and fund managers.
Max Williams, AltEdge Capital's Head of UK Business Development adds 'This structure allows investors to trade at NAV without investor supply or demand affecting the price, as is often the case with listed Closed Ended vehicles.'
The AltEdge Composite Fund of Hedge Fund Tracker Note offers investors returns indexed to the performance of two well established funds of hedge funds run by the Mayfair-based manager. 'We have optimally blended a share class of our flagship Balanced Shares which were recently rated AAA by Allenbridge Hedgeinfo, and our Dynamic Leverage Shares to offer investors a superior risk return profile against what currently exists in the closed-ended market and other similar competing products', says Chris Goekjian, CEO/CIO of Altedge.
Goekjian added: 'The Barclays SIMPLE Note structure has previously been a proven method of giving tax efficient treatment to UK on-shore investors, offering monthly NAV to investors, with the added benefit of allowing a market maker to provide intra-month liquidity.'
Backgrond Note: Altedge Capital is a London-based alternative investment manager founded in 2001 by Chris Goekjian, the former global head of fixed income and derivatives at Credit Suisse. AltEdge Capital's flagship fund, the Altedge Diversified Fund SPC Balanced Portfolio is an unleveraged global multi-strategy fund of hedge funds that targets returns substantially in excess of risk free rates while maintaining low volatility and low drawdown and.
The Altedge Diversified Fund SPC Dynamic Leverage Portfolio is a leveraged global multi strategy fund of hedge funds, which targets aggressive returns with equity like volatility.