Jersey-based Ermitage Group today unveiled its latest fund of funds offering with US$70 million in initial assets.
The Cayman Islands-domiciled Global Long Short Fund asset allocation is weighted 35% to Europe, 25% to North America, 15% to Asia and 25% focused on global and emerging market managers, according to Mike Howard, Ermitage’s head of long/short. It will initially invest in 20 managers. The Global Long Short Fund is an extension of the firm’s three existing products: Japan Absolute Fund (launched in 2002), European Absolute Fund (1999) and North American Absolute Fund (1999).
“We’ve got three existing [long/short] products so we have relationships with some managers for awhile from there and there will be a sprinkling of newer managers and ones with shorter track records,” said Howard. “We’ve been quick in getting specialist products to the market and logically we were missing an all-encompassing global product and we had a couple of investors who wanted to invest in a global product and get this fund off the ground.”
The fund is targeting returns of 10% to 15% per annum “when equity markets are in a bull market phase and protect assets during bear markets, achieved with moderate levels of volatility,” according to the firm.
It charges a management fee of 2.25% and a minimum investment requirement of $150,000 for Class A investors. Class B investors have a higher minimum investment requirement of $500,000 (or currency equivalents) but a lower management fee of 1.5%. Both share classes charge a 10% performance fee.
It offers monthly subscriptions and redemptions, with 90 days' notice required for redemptions. Its fees and minimum investment requirement could not be obtained at press time.
Following its first hedge fund investment in 1984, the firm's assets under management have grown to over US$2.7 billion.