The IFSL Blacksqure multi-manager absolute return fund started trading earlier this week with the aim of providing greater liquidity, tax efficiency, transparency and regulatory oversight than offshore funds of hedge funds.
Blacksquare Capital launched the fund with a universe of 100 to 150 funds to choose from, but expects the universe to increase as hedge fund managers in particular enter the market with Ucits III compliant funds.
The Blacksquare fund invests in underlying funds from Blackrock, Bluecrest, Brevan Howard, Gartmore, JP Morgan and Threadneedle. Blacksquare says these are best of breed funds but says it will be open-minded in selecting managers that meet its selection criteria and pass due diligence.
Blacksquare Capital partner Madilean Coen says: “If funds are launched now, we would want to know if the managers had experienced the difficulties of 2008.
“We want to see risk management, with managers keeping the money they make.”