New German hedge fund launched
GERMANY - Focus Investment Group, a Bermuda-based hedge fund provider, plans to offer one of its products to German institutional investors starting next month.
Focus said that from November 1, German investors would be able to buy shares in its “Focus Star” fund via a private placement. It said it would primarily target the fund, domiciled in Luxembourg, to pension funds, insurance companies, and financial brokers.
“The move will further strengthen Focus’ expansion plans in the European marketplace and enable German institutional investors to access a unique alternative investment vehicle,” said Eugenio Verzili, managing director at Focus.
The hedge fund provider did not, however, say how much volume it expected to generate in Germany with Focus Star. Since its inception four years ago, the fund has taken in 140 million US dollars in assets (114 million euros).
Commenting on Focus Star’s investment strategy, Verzili told IPE that 80% of the fund followed a long/short approach to global equities while the remaining 20% espoused relative value and event-driven approaches.
According to him, the fund aims to generate returns of between seven to 10% a year with a volatility equaling 3-5%.
Since the start of 2004, the domiciling and direct sale of hedge funds has been permitted in Germany for the first time in its history.