The sterling share price of hedge + rose by 29.6 per cent between October 1, 2006 and September 28, 2007, while the Euro shares increased by 33.7 per cent. Dollar shares were first issued in November 2006 and their price has increased by 25 per cent. All share classes are trading at a premium to their net asset values.
Hedge +, managed by Ken Kinsey-Quick and Alex Kuiper, was launched in February 2004 with the aim of achieving absolute returns above 10 per cent a year.
As well as investing in a core portfolio of established hedge funds, hedge + has exposure to early stage and start-up funds because Thames River Capital believes hedge funds make their best returns in their first three years.
The firm intends to raise in excess of £50m for hedge + through a placing and offer for subscription. It says investors are looking for absolute returns from funds that are not correlated with equity markets.
Thames River Capital investment director Michael Warren says: “There are two reasons the fund has outperformed. First, at the end of 2006, the strat-egy that Ken put in place reflected the fact that he was ner-vous about too much direct regional exposure – in other words, long equities.
“He also had negative views on the US sub-prime market and one of the holdings shorted sub-prime. That has been a real fillip for performance.”