Merrant Begins Marketing Market-Neutral Fund Of Funds

Aug 31 2010 | 11:11am ET

With an unbroken track record of positive performance, fund of hedge funds shop Merrant Fund Management is set to open its market-neutral fund to outside investors.

The firm will begin marketing the Merrant Select Fund, which it launched last year, next month. And despite the ups and downs of the global economy over the last 12 months, the fund has never suffered a down month and has returned 7.2% on an annualized basis.

Indeed, even on a weekly basis, the fund boasts an 85% positive rate.

“We search for highly liquid strategies that can generate substantial alpha and explore market inefficiencies regardless of directional movements of the global equity and bond markets,” CEO Ulf Sedig told HedgeCo.net. “We have a different approach than the majority of funds of hedge funds, who usually seek the ‘best of breed fund’ within different hedge fund strategies.” That leeds to too much downside correlation, Sedig said.

The Merrant fund invests in between 10 and 15 mid-sized hedge funds specializing in liquid, repeatable strategies. The fund is targeting annual returns in the low double-digits.

The Swedish firm plans to market the fund to European institutional investors, especially family offices and small- and mid-sized institutions in the U.K. and Switzerland. The fund currently manages US$25 million.

Merrant Select charges 1% for management and 20% for performance over 3% with a high-water mark. It features monthly liquidity and has a US$250,000 minimum investment.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

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

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Looking for a way to keep warm during the cold weather or rather alleviate your cold while under the weather?