Jupiter International Group is hedging its bets with the introduction of the Jupiter fund of hedge funds.
This is Jupiters first fund from the recently arrived management trio of John Chatfeild Roberts, Peter Lawery and Algy Smith-Maxwell, who joined Jupiter from Lazard in March 2001. At Lazard they were responsible for managing the Lazard PPF astral fund, which was also a fund of hedge funds.
The product is aimed at the experienced high net worth investor and increases the number of hedge funds run by the company to three. The other two funds are the Jupiter Hyde Park hedge fund and the Jupiter carme hedge fund. All three are open-ended investment companies based in Dublin.
The focus of the fund will be to invest in 13 internal and external hedge funds managed in London, New York, Edinburgh and Boston. These funds are still in the process of being chosen but will include the Victoria capital, Kingsway, Elm Ridge and Jupiter Hyde Park hedge funds.
They will all have a mixture of strategies, from market neutral to long and short. Market neutral funds do not expect the stockmarket to move much and so they are not very volatile. Long funds buy equities when prices are low in the hope that they will rise in value. Short funds do the opposite, selling when prices are high in the expectation that they have peaked and are about to fall.
Most market indices are still showing signs of volatility, especially due to fears of a global economic slowdown. The success of the Jupiter fund will depend on being able to outguess the market, although because it is a fund of funds the amount of risk involved will lessen.
According to Standard & Poors the Jupiter Hyde Park hedge fund is ranked 36 out of 92 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over one year to August 6, 2001.