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Hedge fund launch from New Star

New Star is launching a hedge fund on May 17th that will invest in convertible bonds and similar instruments.

The fund will be listed in Dublin, and will target returns of Libor plus ten percent to Libor plus fifteen percent.

It will be available in both dollars and euros, and minimum investment will be $100,000.

The launch follows the arrival of Sajid Ramzan and Chris Beton from Soros who alternative investment head Charlie Tritton believes are one of the most experienced teams in Europe in convertible bond arbitrage.

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Strong dollar can be a powerful driver of UK dividend growth in 2015

By Robin Geffen, fund manager and CEO 

This year threatens to be a challenging one for UK dividend hunters. Last year saw an all-time record amount paid out in UK dividends — some £97.4bn, according to research from Capita Dividend Monitor. Yet as Capita also pointed out, out the biggest single factor driving the growth in the fourth quarter of last year was easy to identify: the rising US dollar. 

In our view, this trend is much more than simply a one-quarter phenomenon. It is actually the most profound issue to get right as a UK equity income investor in 2015. We believe that the US dollar will continue to strengthen significantly from its current level. This is due more to the US economy’s demonstrable de-coupling from the rest of the world than to a view on the UK. The US has a strong chance of tightening monetary conditions this year without jeopardising growth or de-stabilising its housing market. The same can unfortunately not be said about the UK.

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