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Alternative Market Briefing

Varus launches L/S European fund with a focus on German equities

Thursday, December 17, 2009

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From the Opalesque Team:

Opalesque has learned that Zurich based investment advisor HSCA AG recently launched The Varus Fund, a long/short European equity fund. According to investor communications, since its September 2009 inception through month-end November, the Fund has returned +3.29%.

Fund co-portfolio managers and HSCA founding partners Stefan Heieck and Frank Siebrecht will maintain a strong focus on German equities with a regional portfolio breakdown that will focus approximately 70% on German equities and 30% on European equities.

The team will look to participate in expected economic growth in Germany as strong exports are further strengthened by the growing needs of emerging markets (BRIC states in particular), as well as the country’s outlook for tax reductions in 2010 and 2011 which the pair expects will further boost growth prospects.

Reflecting some of the investor driven trends that are currently impacting the hedge fund industry, the Varus Fund managers have focused on providing increased levels of transparency and liquidity. Due to the liquid nature of the team’s investment strategy, the Fund will not provide any gating terms or terms that would allow the managers to create side pockets or freeze redemptions.

They are additionally offering investors the ability to have full position transparency, and will launch with an independent administrator.

Morgan Stanley is the......................

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