Henderson Global Investors is jumping on the hedge fund bandwagon with its UK equity market neutral fund.
With a minimum investment level of $100,000, the fund is aimed at discretionary managers, institutional investors and offshore high-net-worth individuals who are looking for capital growth. The fund is domiciled in the Cayman Islands and is listed on the Dublin Stock Exchange.
The fund will invest in up to 350 UK companies and follows four strategies: fundamental, liquidity, relative value and event driven. These will give the fund a neutral position, providing returns whatever happens in the general stockmarket.
The fund has been based on the insurance fund from Sydney-based AMP, which took over Henderson Global Investors in 1998. The insurance fund was introduced in 1997. Both funds are managed by Andrew Formica, fund manager and director of alternative investments, who joined Henderson in 1998 from AMP.
By investing in 350 companies Henderson is spreading the risk. However, it is restrictive in confining investment to just the UK. Other hedge funds such as the Boadicea fund from Deco Capital invest in a smaller spread of 30 to 50 companies, but invest in the UK and Europe, spreading the risk in a different direction.
According to Standard & Poors, of the 14 Henderson offshore funds on the market at the moment, two are first quartile, two are second quartile, five are third quartile and three are fourth quartile, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to October 29, 2001.