Laxey Readies UCITS-Compliant Investment Trusts Hedge Fund

Feb 18 2010 | 2:15am ET

Laxey Partners is the latest hedge fund to join the UCITS III bandwagon with a fund that will invest in investment trusts.

The London-based activist firm plans to launch a Dublin-domiciled absolute return fund that seeks to profit from discount volatility in investment trusts, the Financial Times reports. While the new vehicle will be a passive investor, it will often invest in the same trusts as other, activist Laxey funds, potential boosting the hedge fund’s strength in battles with management.

Laxey sees an opportunity in a sector where widespread activism before the economic crisis kept discounts to net asset value low.

“Hedge funds have more redemptions and deleveraging to go through so we think the extra-tight discount discipline that was producing will be absent for the foreseeable future,” Laxey co-founder Andrew Pegge told the FT.

The firm said the new fund would meet client demand for onshore hedge funds.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of