Old Mutual Broadens Stat. Arb. Approach

May 21 2007 | 11:54am ET

London’s Old Mutual Asset Managers is readying a statistical arbitrage hedge fund, expected to launch on June 1 with at least US$25 million in assets.

The Old Mutual Global Statistical Arbitrage Fund will use a proprietary quantitative model to find short-term pricing anomalies within sectors, according to the firm. The fund is expected to hold about 850 names drawn from the Standard & Poor’s Global 1200 Index. It will be domiciled in the Cayman Islands and listed on the Irish Stock Exchange.

Paul Simpson and John Dow, who have run OMAM’s Old Mutual European Statistical Arbitrage Fund since its launch last year, will manage the new offering.

“The launch of the Old Mutual Global Statistical Arbitrage Fund adds further diversification to our hedge fund range and complements our existing offering within this area of the market,” OMAM Chief Investment Officer Eoin Murray said. “I have every confidence that [Simpson and Dow] will be able to replicate the success they have enjoyed with the European strategy.”

The fund charges a 1.5% management fee and 20% performance fee, with a US$100,000 minimum initial investment requirement.

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