ML Capital Asset Management says the first manager to launch on the Montlake Ucits platform will be Clareville Capital Partners, the firm founded by David Yarrow.
The fund will commence trading on 1 October 2010.
Yarrow and Angus Donaldson will co-manage a Ucits compliant derivative of the 13 year old Pegasus Fund, which employs a UK long/short equity strategy.
John Lowry, chairman of ML Capital, says: "The Ucits revolution allows investors to access managers who can actively short stocks and hedge a portfolio, however managers with long and successful experience of running equity hedge funds are in short supply. The Pegasus fund has been running for over a decade and has always been run in line with the Ucits principles, which is very comforting to our investors.
"Yarrow and Donaldson’s investment style will appeal to a lot of our investors. Their strong performance in upwardly trending markets and excellent downside protection in perilous markets is demonstrated by their track record. This is exactly what the alternative Ucits solution is looking to provide to investors and is why we believe that Clareville Capital is the ideal launch manager for the Montlake Ucits platform."