Auriel Capital, an asset management firm specialising in absolute return strategies, is launching a market neutral fund called Auriel UK Equity Fund.
The new hedge fund comprises both long and short investments in FTSE 100 companies.
The fund complements Auriel Capital’s existing European equity market neutral strategy, which has generated annualised returns of 8.5 per cent since its inception in June 2007.
The Auriel UK Equity Fund’s strategy involves trading the most liquid shares in the UK market. The objective is to generate absolute returns by managing a diversified, risk-controlled portfolio with low correlation to traditional asset classes and to peers in the existing hedge fund universe.
The portfolio is structured to be both beta and sector neutral and is designed to minimise exposure to multiple risk factors.
Larry Abele (pictured), founding partner of Auriel Capital, says: “Our UK equity strategy is available either as a standalone offering or in combination with our existing European strategy. We believe that market neutral equity investment based on detailed, systematic analysis of companies can generate strong and consistent returns that are independent of market movements. These market neutral strategies are perfect for investors seeking uncorrelated returns without exposure to market risk.”
