Morley Fund Management has recently launched its UK Equity Long/Short fund with £16 million in seed capital. The Guernsey domiciled, Irish-listed fund will be managed by portfolio managers Ian Lancaster and James Follows.
Lancaster and Follows, alumni of long/short equity shop Progressive Alternative Investments Limited, joined the firm last June to continue managing their fund, which was recently re-branded as the Norwich UK Income Opportunities Fund, and to develop a long/short hedge fund.
The new fund will hold some 90 positions with a maximum long position of 3% to 6% of its NAV and a maximum short position of 2% to 4%. Its investment objective is a 10-15% return per annum.
“The Morley UK Equities Long Short hedge fund is a natural extension of the long-only space,” said Lancaster. “The aim of the fund is to deliver an absolute return to investors with significantly lower volatility than the FTSE All Share Index by taking long and short positions in UK listed equities. The focus will be on small- and mid-cap stocks and we will also invest selectively in the large-cap sector.”
The UK Equity Long/Short fund charges fees of 1.5/ 20 with a minimum investment requirement of £300,000, €500,000 or $500,000.
Morley currently manages five single-strategy hedge funds—four in long/short strategies and one convertible bond arbitrage fund. It also manages a fund of hedge funds, segregated private equity funds and two funds targeting absolute returns, one via bonds and the other through tactical asset allocation.