Cazenove Retail Hedge Fund’s Slow Start

Feb 22 2010 | 11:02am ET

Launched with a bang, a Cazenove Capital Management retail hedge fund is likely to remain cold to new investors for some time.

The firm’s Absolute U.K. Dynamic Fund, which sucked up £123 million in just two weeks after its launch in September, will remain closed to new investment for another six to nine months, the Financial Times reports. The firm hopes that the extra time will give the fund a chance to boost its performance, which has been basically flat since inception.

Absolute U.K. Dynamic is modeled on Cazenove’s U.K. Dynamic Absolute Return Fund, and boasts the same managers as the hedge fund, Paul Marriage and Neil Pegrum. But unlike the Absolute Return fund, U.K. Dynamic is open to retail investors.

Marriage blamed the new fund’s slow start on the recent market rally.

“We predicted it would take us eight to 12 weeks to get invested, given our small- and mid-cap bias and the liquidity headwinds involved,” he told the FT. “But we launched on the day Kraft tabled its initial bid for Cadbury, which created a strong upward shift in the market and people’s expectations for equities.”

“It would have been easy to start quickly, but we took a step back and invested carefully, so it took us longer to build the portfolio,” he explained. The fund is now fully invested, and targeting between 15% and 16% annual returns.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.