GAM launches active US hedge fund
Global Asset Management (GAM) is launching a new active US hedge fund on May 24 managed by James Abate, who joined the company’s New York office in January.
The fund, GAM American Focus Hedge Fund, will be a concentrated, risk-controlled portfolio normally comprising 35-50 long positions and 25-50 short positions, says the manager.
The emphasis of the brief will be on large and mid-capitalisation stocks mainly selected from the S&P500 index.
Single positions will not represent more than 6% of the fund’s net assets and net exposure will range from market neutral 0%, to a high of 150% of net assets, according to the company.
“GAM recognises that there is significant need for equity funds that offer the potential for steady, less volatile returns whether markets are falling or rising. GAM has given me a unique opportunity to bring together a very experienced team and offer my pragmatic and opportunistic stock selection methodology in both long and hedge strategies for investors in the US stock market,” says James Abate.
The investment team will use an approach where they look at free cash flow, volatility of free cash flow and return on investment related valuation across industry sectors on both long and short investments.
The fund is an offshore, non-distributor type, with a minimum investment set at US$5,000. The yearly management fee is 1.5% and the performance fee is 20% of net realised and unrealised gain per annum.