GLOBAL - Glasgow-based Britannic Asset Management has launched its first hedge fund - the US$20m Britannic World Markets Fund - in the Caribbean.
The fund is a Cayman Islands domiciled master/feeder administered in Dublin and listed on the Irish Stock Exchange.
The investment policy is based on the output of Britannic’s established market and sector allocation model (MASAM), the firm said in a release.
MASAM is a quantitative model designed to make positive gains from using long/short strategies between different geographical equity markets.
Commenting on the launch, Gavin Stewart, chief executive said: “Our quantitative model is unique and based on methodology that has been rigorously developed and tested on long-only funds for many years.
“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.
“A typical position for the fund would have long positions in seven markets and short in seven markets, with a net exposure of zero. Not many managers are adopting a top-down macro approach based on relative values and applying it on a country only basis.”
Stewart said the growth in hedge funds had been “substantial” and would continue to be driven by increased allocation from institutions.
“Hedge funds continue to provide diversification benefits for investors and we believe this fund should deliver good returns regardless of the market’s direction,” he added.
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