High net worth clients could get their pulses racing by investing in Polar Capital's technology absolute return fund.
This offshore fund aims to achieve capital growth by investing in global technology. It uses long and short hedging techniques in an attempt to reduce volatility. This means the fund managers sell overvalued stocks with the intention of buying them back when the prices are corrected.
The fund is managed by Brian Ashford Russell and David Magliocco, who both managed technology funds at Henderson Investors until December 2000.
They will manage an initial portfolio of between 30 and 60 stocks, although there is no limit on the number of stocks that can be held. Information technology medical technology and other types of technology such as industrial and environmental may be represented in the portfolio.
As a global fund, there are no geographical limits, although the US will feature heavily in the portfolio because it dominates the technology sector. The high minimum investment of US$100,00 underlines that this fund is not suitable for the mass market, although it could attract experienced high net worth investors and pension fund managers.
According to Standard & Poor's, the Polar Japan growth fund is ranked 32 out of 42 funds based on £100,000 invested on a bid to bid basis with gross income reinvested over three years to June 25, 2001,