UK - Britannic Asset Management has launched its first hedge fund which is targeted primarily at pension scheme clients.
The Britannic World Markets Fund’s investment strategy is based on the output of the investment manager’s established market and sector allocation model - a quantitative model designed to make positive gains from using long/short strategies between different geographical equity markets.
Britannic Asset Management chief executive, Gavin Stewart said: “Typically, long/short managers are momentum players and are stock based rather than country based.
“Our approach is innovative in that we are effectively selecting a number of markets from around the world.”
The fund will use a range of 45 variables spread across six categories to score 50 developed and emerging markets.
Britannic explained that a high score would indicate a market that was likely to outperform and would form the basis of the long basket, while those with the lowest scores would form the short basket. The model output will be supplemented by an overlay of the fund manager’s market analysis.
The Britannic World Markets Fund is managed by Britannic Asset Management specialist funds chief investment officer James Smith, who has 20 years’ investment experience. The initial size of the fund is $20m (£10.9m).
The fund is a Cayman Islands domiciled master/feeder administered in Dublin. The feeder fund is listed on the Irish Stock Exchange. Management charges are 1.5% per annum plus a 20% performance fee.
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