Guinness-Backed Firm Offers Uncorrelated Fund Of Hedge Funds

Jun 8 2009 | 12:40pm ET

47 Degrees North, the hedge fund firm backed by the Guinness family office, has launched a fund of funds designed to be uncorrelated with either equities or fixed-income.

The London-based firm’s Innovation Fund debuted on June 1, Reuters reports. It will invest in between 20 and 25 funds focused on such areas as electricity, transportation and volatility arbitrage, as well as insurance-linked securities and stocks in the Middle East and North Africa.

“People didn’t realize (during the credit crisis) that if everything goes bad, then correlation can go to one (i.e., full correlation between traditional and non-traditional assets,” 47 Degrees CEO Claude Porret told Reuters. The Innovation fund is designed to avoid that by investing in non-traditional asset classes, hoping to attract investors still shell-shocked by last year’s massive losses with the promise of better diversification.

The new fund was seeded with US$12.5 million from Iveagh, the Guinness family office. 47 Degrees hopes to attract US$100 million to the fund within a year.


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