Friday, 21 October 2016
Last updated 9 min ago
Apr 12 2007 | 11:05am ET
One year after opening its doors for business, Luxembourg-based quantitative shop Reech AiM Group is bringing its first hedge fund offerings, Iceberg Alternative Real Estate Fund and Equitech Relative Value Fund, to the U.S., European and Middle Eastern markets.
Reech recently formed a partnership with real estate conglomerate CB Richard Ellis to focus on developing real-estate hedge funds. “We’re looking to bring the real estate asset class into the hedge fund world. A lot of people, especially in the U.S., think it exists already, but this is in the form of long/short equity with a focus on real estate,” said Christophe Reech, founder and CEO.
“The fund is investing in all financial instruments exposing us to real-estate risks such as listed securities, unlisted real estate vehicles and property derivatives. We’re not buying physical real estate. The fund takes a purely quantitative approach, so we don’t have stock pickers on board.”
Stephen Ashworth, former head of equity derivatives at First Chicago in London, is the fund’s portfolio manager.
The firm is bringing its quantitative prowess to bear in the equities market via the Equitech Fund, a statistical arbitrage fund. “It is a highly productive fund in the sense that it runs on one million simulations per hour, so it is a very tech intensive fund,” said Reech.
Marc Blanchard, a former statistical arbitrage fund manager for Equalt, a subsidiary of Calyon, is Equitech’s portfolio manager.
Reech declined to comment on how much both funds launched with, saying only, “We’re in the top range from what you have seen so far.”
Both vehicles charge “traditional” hedge fund fees, with a minimum investment requirement of $1 million. Both funds are also targeting annual returns of LIBOR plus 15%.
Reech added that another fund offering within a third asset class, which traditionally isn’t seen in the hedge fund world, is coming sometime within the fourth quarter.
Prior to founding his firm last year, Reech helped build and ran derivatives divisions at Nikko Europe, Commerz Financial Products (the former derivatives arm of Commerzbank) and Banque Paribas (now part of BNP Paribas).