BlackRock has launched its European Absolute Alpha Fund, a pan-European long/short Ucits III equities offering. Vincent Devlin serves as portfolio manager.

The fund will hold between 50 and 100 names and will employ four investment strategies: long investing, synthetic short investing, pair trades and cash, where the portfolio also has the flexibility to move entirely into cash if the market environment dictates.

“Investors should look on the fund as one that aims to give returns above cash using European equities to drive these returns—but without the downside risk normally associated with being in the market,” said Devlin. “It's a stepping stone for cautious investors who want more than cash can offer, but with contained risk.”