3 Mar 2010
Merchant Capital, the UCITS III platform provider to the global hedge fund industry, has announced that its first client is now fully operational. Robert Maxwell of Tressis SV will act as investment adviser to the fund, named the Merchant European Equity Fund, while Merchant Capital is the fund’s investment manager. Tressis is also the distributor of the fund.
The fund’s strategy is primarily equity long/short based on a universe of 600 stocks, with characteristics of an equity market-neutral strategy. The initial structure of the Merchant European Equity Fund will be based on twenty long and twenty short positions, which are re-balanced on a monthly basis. Typical gross exposure will not rise above 180% and in compliance with UCITS III regulations, the fund has a hard limit of 200% gross exposure. Net exposure will be kept within a range of +/- 20% at all times.
Merchant’s UCITS III umbrella structure allows asset managers to launch UCITS-compliant investment vehicles, typically hedge funds. Managers who use the Merchant platform are free to brand their products as they prefer to best reflect the style and investment philosophy of their fund.
The fund is fully UCITS III compliant and offers investors weekly net asset valuations. The fund is initially targeting High Net Worth Individuals and institutional investors across Europe, with plans to also reach family offices in Europe and North America.
The fund’s strategy is primarily equity long/short based on a universe of 600 stocks, with characteristics of an equity market-neutral strategy. The initial structure of the Merchant European Equity Fund will be based on twenty long and twenty short positions, which are re-balanced on a monthly basis. Typical gross exposure will not rise above 180% and in compliance with UCITS III regulations, the fund has a hard limit of 200% gross exposure. Net exposure will be kept within a range of +/- 20% at all times.
Merchant’s UCITS III umbrella structure allows asset managers to launch UCITS-compliant investment vehicles, typically hedge funds. Managers who use the Merchant platform are free to brand their products as they prefer to best reflect the style and investment philosophy of their fund.
The fund is fully UCITS III compliant and offers investors weekly net asset valuations. The fund is initially targeting High Net Worth Individuals and institutional investors across Europe, with plans to also reach family offices in Europe and North America.
George Cadbury, Director of Merchant Capital, said: “Tressis’ fund is an excellent example of how we wish to facilitate innovative investment managers with the essential operational and regulatory support to bring their investment ideas quickly to market. We are now in advanced discussions with a number of other fund management companies looking seriously at how they can use us to launch UCITS funds this year.”
Commenting on the launch of the fund, Robert Maxwell of Tressis SV, added: “We believe that a fund of this type within the UCITS structure provided by Merchant Capital will be very well received by investors looking for consistent returns with low volatility.”
