HSBC Global Asset Management is launching a UCITS III-compliant emerging markets hedge fund.
The firm will seed the new HSBC GIF GEM Equity Alpha Fund with US$20 million and hopes to raise US$100 million for it this year.
The fund, set to launch this month, is targeting annual returns of 10% to 15%; its portfolio will include an equal number of long and short names, roughly 35 each.
HSBC has entrusted the new fund to managers Omar Negyal and Nick Timberlake. Negyal joined the firm last year from Lansdowne Partners.
“The HSBC GIF GEM Equity Alpha Fund is a high-conviction long/short portfolio,” Negyal said. “The investment process is fundamentally-driven by a highly disciplined approach to stock picking, using combined profitability/valuation metrics for both long and short equity selection.”
The GIF GEM fund will charge 1.5% for management and 20% for performance above Libor. It has a minimum investment requirement of US$5,000.