Saturday, 30 April 2016
Last updated 22 hours ago
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.