UK - Barclays Global Investors (BGI) has launched a European equity market neutral fund, aimed at hedge fund of fund providers, institutional investors and family offices.
It is the second of BGI’s equity neutral funds – the first being UK-oriented – and will be managed using the same investment process, whereby money is investing equally long and short.
The fund is expected to deliver an annual return, after fees, of 10% over three-month LIBID. Due to its high-risk profile - volatility of 10% per year, relative to the MSCI Europe and FTA Developed Europe (ex-UK and ex-Greece) – the fund is targeting hedge fund of fund managers.
BGI will limit the fund’s exposure to individual stocks by way of a portfolio of approximately 350 stocks from a universe of 500.
“The fund has also seen interest from existing clients in the UK fund, and those who missed the opportunity to invest in the UK fund prior to its closure,” says Mark Fitzgerald, director of hedge fund products at BGI.
The fund’s capacity will be e500m geared, with the minimum investment being e250,000. the fund is registered in Dublin.