The firm aims to construct a diversified portfolio of between 15 and 20 independent hedge fund managers following a variety of styles, such as
- merger arbitrage
- statistical arbitrage
- convertible arbitrage
- fixed-income arbitrage
- equity market neutral.
Portfolio managers of the new fund will screen and select the individual hedge funds they believe will perform best.
They will aim for annualized net returns of between 10% and 12% over a three to five-year time horizon with low correlation to the equity and fixed income markets.
Minimum investment in the fund is $1 million, with a 1% management fee for investments up to $5 million. The fee falls to 0.8 % for investments between $5 million and $25 million and to 0.6% for those larger than $25 million.
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