Barclays' fund management arm, Barclays Global Investors, and its investment banking division, Barclays Capital, have launched a new fund of hedge funds for European institutional investors. Dublin-domiciled BGI Diversified Alpha Funds (DAF) uses a range of strategies including relative value, event driven and long-short equity.
DAF will invest in Dublin-regulated unit trusts for which 10 undisclosed hedge fund managers have been appointed. Managers are expected to be added over time, with the figure potentially reaching 25 in coming years, a spokesman added.
BGI will manage the fund - which will be hedged into a choice of currencies - and be responsible for its asset allocation. Barclays Capital will monitor individual portfolio risk exposures.
Commenting on the launch, Kevin Coldiron, head of alternative investments, BGI Europe said:
“[DAF] represents a step change for institutions allowing them to use hedge funds to improve the risk-return profile of their portfolios while maintaining the highest level of operational risk control.”
The fund aims to hit annual returns of between 4-6%.
US investment advisory firm Evaluation Associates Capital Markets (EACM) aided manager research.
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