HSBC is to launch the HSBC UCITS AdvantEdge fund of hedge funds, which is designed for both retail and institutional investors who can participate in the unprecedented absolute return opportunities offered by current market conditions via both a liquid and regulated offering.
The HSBC Alternative Investments Ltd (HAIL) managed Fund offers weekly liquidity and meets strict rules on leverage, counterparty risk and instruments traded. It will combine a number of core strategies that are expected to benefit from opportunities created by the credit crunch: discretionary macro, equity market neutral, managed futures, and equity long/short.
The official launch of UCITS AdvantEdge will be at the end of November and will comprise only those “blue chip” managers with strong infrastructure and track records, as assessed by HAIL’s hedge fund research division, which is one of the biggest in the industry.
HAIL believes that blue chip hedge funds are ideally placed as operators of flexible investment approaches to achieve significant unleveraged returns from a number of alternative strategies.
“The hedge fund industry is emerging leaner and fitter as weaker participants close down, leaving the surviving providers to reap the rewards from their more robust platforms in 2009 and 2010,” said Tim Gascoigne, Global Head of Portfolio Management at HAIL. “The HSBC UCITS Advantedge fund will allow a wide range of both onshore and offshore investors to participate in the hedge fund sector.”