Odey Asset Management has introduced the Odey Latham global fund, an offshore open-ended investment company that uses hedging techniques.
The fund aims to provide high returns with low volatility whatever the conditions of the stockmarket by applying long and short hedging techniques to stock selection.
This means that the fund manager, Mark Latham, goes short by selling stocks that he thinks are overvalued and going long by buying stocks when their price has dropped.
Latham joined Odey Asset Management in February 2001. He had previously managed the digital age hedge fund at Digital Capital. Between 1987 and 2000, he managed global equity, resource and US funds for Barings, including the global resource and world opportunity funds.
At Odey, Latham will have a universe of 17,000 stocks to choose from, covering different countries and sectors. He will take a top down approach to narrow the stocks down to a small number of his best ideas. The stocks are then analysed on the basis of their turnover, management and ownership.
The fund is suitable for high net worth investors who can afford to take an adventurous path if they are not satisfied with conventional funds that may be affected by the downturn in global stockmarkets.
However, this fund is riskier than a fund of hedge funds that uses different fund management styles because it is restricted to one hedge fund strategy and one fund manager.