LGT Capital Partners (LGT CP) has launched a new hedge fund vehicle for both institutional and wealth management clients offering access to the individual components of hedge fund strategies that make up the firm’s primary evergreen LGT Endowment portfolio, according to a report by CityWire.
The fund will invest equally in both discretionary and systematic hedge fund strategies, offering monthly liquidity.
On the discretionary side, the focus is on specialised teams that generate returns through in-depth analysis of single stock selection, as well as investments in events such as mergers and acquisitions and various segments of the global credit market.
The systematic component prioritises quantitative hedge funds, employing strategies like trend-following commodity trading advisers (CTAs), quantitative macro, short-term trading, equity market-neutral quants, and artificial intelligence-based approaches.
The new hedge fund vehicle aims to deliver absolute returns while mitigating downside risk in any market environment, and also seeks to provide a diversified portfolio that is uncorrelated to traditional asset classes like equities and bonds. The fund plans to invest in over 30 hedge fund managers worldwide.
The new vehicle complements LGT CP’s recent additions to its product lineup, which include semi-liquid and open-ended private equity and private credit strategies. The firm, which has been investing in hedge funds for 25 years, manages its investments primarily through its proprietary managed account platform, providing maximum transparency, liquidity, and capital efficiency.
LGT CP currently oversees more than $100bn in assets and serves over 700 institutional clients across 44 countries.
