The fund is run Colin McLean and has the ability to hold both long and short positions.
Hargreaves Lansdown senior analyst Meera Patel says: “Trying to profit from shares that fall in value requires a particular skill and Colin McLean has demonstrated this successfully on an existing fund (not currently available to private investors), although past performance is not necessarily a guide to the future. While the strategy is expected to lower volatility compared to traditional UK equity funds, its application of alternative investment techniques can make it a higher risk fund. There may also be times when the market rallies strongly and this fund could underperform.”
The fund has an annual charge of 1.5 per cent plus a performance fee of 20 per cent on returns in excess of the 3 month sterling LIBOR – London Inter-Bank Offered Rate.
Patel says: “McLean has demonstrated an excellent track record managing a fund of this nature. We believe the overall strategy could reward long term investors and can complement more traditional UK equity funds