London-based RWC Partners will launch its first Ireland-domiciled fund, the RWC Macro Fund, managed by Peter Allwright and Stuart Frost, at the end of January 2011.
The new fund will replicate the strategy of the pair’s previous fund, the Threadneedle Macro Trading Crescendo Fund, which they managed from October 2008 to June 2010. Total returns for this fund, despite the financial crisis, were over 15%. Subject to approval, the new fund will be structured as an Open-Ended Investment Company (OEIC) and a Qualified Investment Fund (QIF).
The RWC Macro Fund will invest in opportunities across liquid markets with a strong emphasis on rates & currencies. Equity indices and commodities will also be used to express the macro trading views of the team.
Allwright and Frost have also recently assumed responsibility for the RWC Cautious ARC Fund, a low-volatility UCITS III Fund with $80 million AUM as of November 2010.
The former fixed-income and macro managers came to RWC in October, having previously run some $3 billion in absolute return bond and macro funds for Threadneedle.
Dan Mannix, head of business development for RWC partners, says the company has chosen to domicile the fund within the EU due to regulatory uncertainty regarding the marketing of hedge funds. “We expect to see significant demand for the fund and are structuring it to meet the highest standards of external oversight and governance,” said Mannix. “Structuring the fund as a Dublin domiciled QIF allows the team to replicate the investment strategy of their previous hedge fund.”