Ignis Asset Management is a long-only firm no more.
The Phoenix Group money manager launched its first hedge fund, seeded with £25 million of internal capital. The Global Macro Government Bond Fund is just the first of at least four hedge funds the London-based firm, which has a fund of hedge funds unit, plans.
The new vehicle is a souped-up version of its Absolute Return Government Bond Fund. The hedge fund, run by Russ Oxley, is targeting twice the volatility of the existing fund, which the firm hopes will allow it to return between 10% and 12% per year above cash.
"The fund will achieve its target returns by translating macroeconomic views into carefully-diversified long and short positions predominantly in the most liquid government bonds and currencies," Ignis said in a statement. "Underlying investments will be split into seven diversified sources of alpha that will be carefully blended to provide a low correlation with other assets in order to deliver positive returns regardless of market conditions."
The Global Macro Government Bond Fund charges 1% for management and 20% for performance. Domiciled in Luxembourg, it is not UCITS-compliant and is not available to retail investors.