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Fortune favours the brave

Hedge fund of fund specialist Fortune Asset Management is set to make its debut in the onshore long-only multi-manager market in January.

p/>The London company is planning a UK version of its Luxemburg-listed Argos international equities fund mana- ged by group chief investment officer Nancy Curtin. Minimum investment will be £5,000.

Although the company admits it will be difficult to take on the bigger retail players with huge marketing budgets, it believes it can compete in terms of performance with its hedge fund background.

The investment process will be based on the philos- ophy underpinning the group’s funds of hedge funds. It will hold 20 to 25 funds, many from institutional and boutique managers unknown to UK investors.

Curtin will select the funds using a bottom-up approach, ensuring that she understands the asset allocation decisions made by the underlying managers and how these affect the overall portfolio.

Curtin will favour managers with a hedge fund mentality, a long track record and who are unconstrained by benchmark indices. Funds that use derivatives and shorting techniques under Ucits III will not be held as Curtin thinks they would increase the risk profile.

She says: “This fund will not invest in the obvious. It is not about finding bog-standard managers with a tracking error of 2 to 3 per cent from the benchmark. I am looking for active managers who do not use shorting but if they want to move 50 per cent into cash it would not bother me.

“The 20 to 25 funds I hold will be punchy in their own right, with spicy returns if you invest in them individu- ally but through the diversity of a fund of funds, the vola- tility will be reduced.”

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