New Star Launches Managed Hedge Fund

by Carla Johnson, Investors Offshore.com

18 May 2004

London-based New Star Asset Management, which manages around $15 billion in assets and $500 million in hedge fund assets, has announced the launch of a new $250 million actively managed portfolio of its own hedge funds.

The open-ended Bermuda mutual fund is aimed at investors seeking to diversify their stock or fund portfolios and gain actively managed exposure to top performing hedge funds. The firm is aiming to provide equity-like returns with bond-like levels of risk and will target returns of 10-15% per annum.

Charles Tritton, Head of Alternative Investments at New Star, commented:

"Hedge funds are now an established asset class and have proven diversification benefits to a balanced portfolio. The New Star Managed Hedge Fund offers investors exposure to a range of top performing hedge funds with the benefit of strong risk management implemented on both the Fund's portfolio and on an individual fund basis.”

The fund will be predominantly weighted towards the UK Long/Short strategy (26%) and the firm’s Japanese hedge fund (20%).

No management fees are charged on the USD and Sterling shares, which are to be listed on the Irish Stock Exchange. Fees and expenses are payable on the underlying funds, including annual management fees of up to 1.50% per annum and performance fees of 20% of absolute returns.

The minimum investment in the fund is $200,000 for the USD shares and GBP100,000 for the Sterling shares.

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