New Star guaranteed hedge fund closes at $180m
UK – The first capital guaranteed hedge fund launched by New Star International Investment Products has raised more than $180m (e201m) - a record for a single manager equity guaranteed hedge fund, according to New Star.
The fund, which was distributed by New Star International and HSBC Investment Bank, was the first product launch for New Star International.
As a result of the demand for the fund, HSBC agreed to increase its guarantee from an original $150 million to approximately $180million.
Under the Capital Guarantee HSBC ensures that at least $100 per Share is repaid to shareholders on the Maturity Date in December 2006. In addition, it is possible for the guarantee to increase.
The fund is designed to provide investors with absolute performance over a five-year investment period and will seek positive returns through active stock picking. It will be exposed primarily to UK equities and will be advised by Alan Miller, New Star's CIO, and Tim Steer, the award-winning UK equity analyst.
The investment policies of the fund will be similar to those of the non-guaranteed New Star Hedge Fund, which is the largest specialist UK long/short equity fund and has one of the longest track records, lasting nearly 5 years.
Philip Goldsmith, managing director of New Star International, comments:
"We are delighted with the success of this new fund and the support received from institutions and financial advisers throughout the world. In these uncertain markets the Fund offers the opportunity to participate in a top performing hedge fund strategy with the capital guarantee providing downside protection.
This is the first of a range of funds that New Star International will be launching for investors throughout the world."