Venture capital trust specialist Matrix Money Management is to launch two funds of hedge funds as part of its bid to become a one-stop shop for long/short investments.
The Citadel market-neutral fund of hedge funds will be offered next month to IFAs. It aims to generate after-charge annual returns of 8-10 per cent with a low-risk strategy designed to iron out volatility.
It will be run by giant hedge fund manager Tremont Advi-sers in what Matrix describes as a highly “market-uncorrelated” fashion. Minimum investment is £10,000.
Matrix is planning a much higher-risk fund aiming for annualised returns of 15-18 per cent. No launch date has been set. It will also be run by Tremont Advisers. Initial charge on both funds will be 4 per cent. Commission is 3 per cent with 0.5 per cent trail.
Sales director Alan Sinstead says: “The fund of fund approach is best at the moment. We want to create a one-stop shop for intermediaries.”