Monday, 8 February 2016
Last updated 4 min ago
Mar 14 2011 | 2:04pm ET
Switzerland has its first regulated onshore hedge fund: Swiss Hedge Capital has launched a long/short equity fund based on its flagship Granada Europe Fund domiciled in its home country and regulated by the Swiss Financial Market Supervisory Authority.
Swiss Hedge said that the Granada fund, which was born along with the firm in 2004, fits the bill for a Finma-regulated vehicle because it employs "a simple vanilla equity long/short strategy with no leverage," fund manager Gerhard Schreiber told Hedge Funds Review. Schreiber added that a UCITS-III compliant version of the fund will likely debut later this year.
"The future is in the regulated world," Schreiber said, even though "it is not that easy to fit into Swiss investment law."
The new Swiss Hedge Trading Fund features strict stop limits, and no single position is permitted to exceed 10% of net asset value. The fund, which debuted with 10 million Swiss francs in assets, generally invests in between 20 and 30 European-listed names with a holding period of roughly three days.
Swiss Hedge's Granada fund has 285 million francs in assets and is domiciled in the Cayman Islands.
The new fund is available exclusively to Swiss investors, and features both franc- and euro-denominated share classes. It charges between 1.85% and 2.35% for management and 20% for performance above its high-water mark, with a minimum investment of 25,000 francs and weekly liquidity.