London-based Thames River Capital has launched a UCITS III absolute return fund of funds with £47 million in assets under management.
The new vehicle—the Thames River Absolute Return Fund—is being managed by alternatives specialist Ken Kinsey-Quick and assistant fund manager James Rou. The pair will invest on a global basis, across multiple asset classes with a bias towards more liquid asset classes and the developed world. Initially, the portfolio will be biased toward market neutral equity and macro funds reflecting the team’s outlook for equities, which, they believe, will struggle to break their 2007 highs, and that volatile financial markets will suit macro managers.
The Thames River Absolute Return Fund will invest in a diversified portfolio of 20-40 absolute return funds with allocations of between 1- 5% of NAV. These include equity long-short, global macro, convertibles, credit, event driven and emerging markets long-short. The fund has a target return of 5-10% with a 5% volatility target and weekly liquidity.
“Markets have rallied aggressively since their 2009 March lows but many investors missed the rally and remain nervous about investing post the upturn in the market whilst the return on cash is almost negligible,” said Michael Warren, investment director at Thames River. “This Fund offers a suitable low risk alternative to the more cautious investor.”
Kinsey-Quick added, “Over the past few years, many experienced hedge fund managers have established UCITS III absolute return funds and our proprietary database includes a talent pool of well over 300 absolute return funds. Although the track records of many of these UCITS funds are short, the managers themselves are well known to us and have extensive experience managing offshore vehicles”