Auriel Capital has launched a British equity market neutral hedge fund.
The London-based firm’s Auriel UK Equity Fund will invests in the most liquid British stocks—those comprising the FTSE 100 Index—with both long and short portfolios. The fund is designed to be both beta and sector neutral, as well as low correlation to both traditional and other alternative asset managers.
“Our UK equity strategy is available either as a standalone offering or in combination with our existing European strategy,” Larry Abele, the Deutsche Asset Management veteran who co-founded Auriel in 2004, said. “We believe that market neutral equity investment based on detailed, systematic analysis of companies can generate strong and consistent returns that are independent of market movements. These market neutral strategies are perfect for investors seeking uncorrelated returns without exposure to market risk.”
The new fund will also serve to complement Auriel’s three-year-old European equity market neutral strategy. Auriel manages a total of US$600 million.
The UK market neutral fund is available is euro, U.S. dollar and pound Sterling asset classes. It charges 2% for management and 20% for performance with high-water mark. There is a US$1 million minimum investment. Redemptions are monthly with 15 days notice. Credit Suisse Group serves as prime broker.