Hedge fund firm Treflie Capital Management is gearing up to launch an emerging markets fund-of-hedge funds on July 1. The new offering will have approximately 20 underlying managers, most of whom have a regional or country specific focus.
Jason Whitt, director of research at the Sag Harbor, N.Y.-based firm, said that what makes the new fund different from the majority of emerging markets funds is that isn't just focused on the BRIC countries (Brazil, Russia, India and China), but has exposure to Asia, Latin America, the Middle East, Sub-Saharan Africa and the CIS (Commonwealth of Independent States).
"There is an entire industry of high quality hedge fund managers in Russia. Three of those will be included in our portfolio," he said. The fund will also invest with seven managers on the ground in Southeast Asia, several in London and New York, and one in the Czech Republic, among others.
The fund will take a multi-strategy approach and diversify across a wide range of sectors. The firm has previously had exposure to emerging markets through its flagship fund.
"This is an extension of a small part of our core strategy," Whitt said. "Despite the run-up in terms of indices in the last few years, we see enormous opportunities over the long term, which is our client base."
Fees for the emerging markets fund are 1% for management and10% for performance.