Cazenove is planning to launch an Absolute UK Dynamic fund, one of the industry’s first absolute funds with a small- and mid-cap bias, on September 7.
The fund will be managed by Neil Pegrum and Paul Marriage and will follow the strategy of the Cazenove UK Dynamic Absolute Return Fund—a Cayman-domiciled hedge fund that Pegrum and Marriage have run for the past three years.
The fund will target an annual return of 10%, using a balance of long and short positions.
It will be broadly market neutral, and is expected to have a low beta and low volatility relative to the equity market.
The Absolute UK Dynamic fund’s bias towards small- and mid-cap holdings means that Cazenove will be monitoring the fund’s capacity.
The fund’s charges will be discounted by 2% for the first month from launch. The initial commission will be 3% and renewal commission 0.5%.
The annual management charge for retail investors will be 1.5% plus a performance fee, and the minimum retail investment will be £1,000.