Investment Week – Cazenove and Gam are offering retail access to hedge fund portfolios with both firms launching fund of fund-style strategies.
Cazenove Capital Management will launch a portfolio exposed to three of its hedge funds, run by Tim Russell, Chris Rice and Neil Pegrum, with the ability to add further mandates at a later stage.
The closed-ended Cazenove Absolute Equity Limited (Cael), which lists on Aim on 6 October, has an initial asset allocation of 35% each to Russell’s UK Equity Absolute Return fund and Rice’s European Absolute Return fund with the remaining 30% weighted to Pegrum’s UK Dynamic Absolute Return offering.
Cazenove’s CIO Anne West is responsible for monitoring the blend, which aims to deliver net returns of 10% a year with volatility between 2% and 4%, and will make adjustments on a quarterly basis.
Robin Minter-Kemp, managing director at the firm, said the initial plan was to include five strategies in the overall portfolio, with Russell’s Leveraged UK Equity Absolute Return and Tim Love’s Worldwide Absolute Return originally slated for inclusion. He said it would be possible to add these and any future hedge fund launches at a later date, but added Love’s fund, which only has a four-month track record, is not mature enough to be included at this stage. The leveraged fund, which is a geared version of Russell’s other portfolio, would effectively have given double exposure to his mandate, he added.
