Guernsey-based Channel Islands Alternatives is feeling good about its Hurdle Fund, a fund of funds, which has posted a 3.49% return year-to-date through October. So good, in fact, that the firm is opening the two-year old, US$15 million fund to outside investors.

Hurdle currently has exposure to long/short equity, natural resources, freight, property, macro, currency, volatility arbitrage and commodities.

The firm said it expects to see an increase in commitments to the fund from disillusioned investors. “We expect a considerable growth in AUM as investors move their assets from failing funds into he funds of funds, which keep providing decent returns and adding alpha, despite current severe market conditions,” said Nick England, founder.

England added that smaller funds of funds are more nimble at exploiting niche markets while larger funds of funds can suffer from “illiquid and gaping markets”.

The Hurdle fund charges a management fee of 1% payable if the annualized returns of the fund exceed 4%, and a performance fee of 10% payable on annualized returns in excess of 5%.

CIA currently advises on US$60m in hedge fund investments.