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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note