BGI Unveils Hedge Fund

November 4, 2002 ( - Barclays Global Investors is launching a new European equity market-neutral fund aimed at hedge fund-of-fund providers, institutional investors, and high net worth customers.

The company said it hopes to raise EURO 500 million for the fund.

The new BGI product is the second market-neutral strategy to be launched by BGI Europe, following the launch of the UK Equity Market Neutral Fund, which raised $750 million this May, according to a Dow Jones report.

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The new fund aims to deliver a return, after fees, of 10% per year above the three-month London interbank bid rate, Dow Jones said. It will have both a euro and dollar share class.

Minimum investment in the new fund will be EURO 250,000, Dow Jones reported.

Investors in the Dublin-registered fund will be able to redeem their assets every Wednesday or on the first trading day of each month.

Market neutral strategies aim to produce absolute returns that are independent of movements in the market.

BGI manages $2 billion of hedge fund strategies.