Fortune To List Managed Account Fund Of Funds

Apr 19 2007 | 10:31am ET

London-based Fortune Asset Management hopes to almost triple the size of its Market Wizards Fund with a London listing that could raise as much as £200 million (US$401 million).

The fund of funds—run by high-profile manager Jack Schwager—gives itself and its investors a greater measure of flexibility by opening managed accounts with hedge funds, rather than investing in hedge funds themselves. The scheme is designed to allow for daily performance tracking, and offers investors weekly net asset values and 15-day notice for withdrawals.

The money raised by the listing will be pooled with the £74 million (US$149 million) already in the Guernsey-listed fund, Citywire reports. The strategy currently employs 24 managers, including an unusually large number of options traders, who make up nearly one-fifth of the portfolio, and an unusually small equity market exposure, estimated at less than 10%.

The fund of funds charges a 1% management fee and 10% performance fee on all returns exceeding LIBOR, and it will rebate 0.5% of fees to investors who remain in the fund for more than one year. The minimum investment requirement is £10,000 (US$20,100).

Fortune is the hedge fund unit of London-based Close Brothers.

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