Swiss fund of hedge funds manager Salus Alpha Management is launching the Salus Alpha Equity Hedged fund, a Ucits III-compliant vehicle that invests in an index comprising up to 30 long/short equity managers. The subscription period ends on September 7.
According to Zug-based Salus Alpha, the new fund will offer investors low volatility, market neutrality and expected returns of between 10 and 12 per cent per annum, and combines the investment techniques of long/short equity hedge managers with the investor security of a regulated fund suitable for private investors.
The Salus Alpha Equity Hedged fund invests in the Long/Short Equity Index, a global, investible benchmark of the performance of the long/short equity strategy calculated by Wiener Börse and with constituents selected from Alternative-Index's universe of alternative investments.
The index comprises up to 30 long/short equity fund managers worldwide, which according to Salus Alpha guarantees an optimised risk-reward ratio for the portfolios. Alternative-Index, which is also part of the Salus Alpha group, produces six hedge fund indices calculated by the Vienna exchange.
According to Salus Alpha, the Long/Short Equity Index has produced an annual return averaging around 16 per cent since 1997, with a volatility of about 3 per cent. The fund is available in dividend-paying and non-dividend-paying share classes.