Fri, Apr 25, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

UCITS III platform provider Merchant Capital announces launch of first European L/S equity fund

Wednesday, March 03, 2010
Opalesque Industry Update - Merchant Capital, the leading UCITS III platform provider to the global hedge fund industry, has today announced that its first client is now fully operational. Robert Maxwell of Tressis SV (“Tressis”) will act as investment adviser to the fund, named the Merchant European Equity Fund, while Merchant Capital (“Merchant”) is the fund’s investment manager. Tressis - Spain's leading independent distributor of investment funds, structured products, fixed income and other financial products - is also the distributor of the fund.

The fund’s strategy is primarily equity long/short based on a universe of 600 stocks, with characteristics of an equity market-neutral strategy. The initial structure of the Merchant European Equity Fund will be based on twenty long and twenty short positions, which are re-balanced on a monthly basis. Typical gross exposure will not rise above 180% and in compliance with UCITS III regulations, the fund has a hard limit of 200% gross exposure. Net exposure will be kept within a range of +/- 20% at all times.

Merchant’s UCITS III umbrella structure allows asset managers to launch UCITS-compliant investment vehicles, typically hedge funds. Managers who use the Merchant platform are free to brand their products as they prefer to best reflect the style and investment philosophy of their fund.

The fund is fully UCITS III compliant and offers investors weekly net asset valuations (NAVs). The fund is initially targeting High Net Worth Individuals and institutional investors across Europe, with plans to also reach family offices in Europe and North America.

Before founding the Merchant European Equities Fund, Robert Maxwell was Managing Director at Liberty Square Asset Management, a position he took up in 2006. Prior to Liberty he was at Neutralis Asset Management and RAB Capital plc. Before moving to the buy-side, Robert was a founding partner of Maxwell Espinosa AV SA and Global Head of European Equity Products for Paribas.

George Cadbury, Director of Merchant Capital, said:

“Tressis’ fund is an excellent example of how we wish to facilitate innovative investment managers with the essential operational and regulatory support to bring their investment ideas quickly to market. We are now in advanced discussions with a number of other fund management companies looking seriously at how they can use us to launch UCITS funds this year.”

Commenting on the launch of the fund, Robert Maxwell of Tressis SV, added:

“We believe that a fund of this type within the UCITS structure provided by Merchant Capital will be very well received by investors looking for consistent returns with low volatility.”

PNC Global Investment Services (Dublin) provides the fund’s fund administration services, and PNC International Bank (Dublin) is the custodial and trustee services provider. Carne Global Financial Services provides independent corporate governance to the fund while Merchant uses Kinetic Partners for risk management and valuation.


About Merchant Capital’s UCITS III Platform
Merchant Capital has built a UCITS III umbrella structure domiciled in Dublin. Coupled with the extensive experience of its management team, clients are supported by some of the industry’s leading service providers whilst being provided with a cost-effective entrée to the UCITS market. Merchant has extensive structuring, investment management and systems expertise.

As investment manager of the UCITS III Umbrella, Merchant will appoint the client as adviser or sub-manager of a sub-fund (“Cell”). This Cell will be managed according to the client’s instructions whilst Merchant manages the oversight, administrative, processing and regulatory functions. Independent trustees are appointed: a UCITS requirement and also a due diligence prerequisite for many investors.

Launching a UCITS III product independently can be an expensive, labour-intensive endeavour. Merchant Capital provides an efficient, cost-effective entry into this new breed of hedge fund. www.merchanthousegroup.com


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  2. Regulatory – Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades, Alternative funds to get SEC test for leverage, liquidity[more]

    Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades From Thelawyer.com: A recent Wall Street Journal article — ‘Activist investors often leak their plans to a favoured few’ — focused attention on ‘activist’ investors and stock analy

  3. …And Finally – This week's least competent criminal is Austrian[more]

    From ABCnews.go.com: A German sought by authorities for alleged fraud has been arrested in Austria — after dropping into a police station to ask officers whether he was under investigation. Police in Salzburg said the 59-year-old man walked into a police station in the city on Friday night. Sp

  4. Investing – Hedge funds find pitfalls along with profits in real estate ventures, Marcato Capital Management makes new bet on Dillard’s[more]

    Hedge funds find pitfalls along with profits in real estate ventures From Law360.com: Hedge funds have joined the rush to real estate deals and development in recent months to close the financing gap left by tightening bank standards, but attorneys say many aren't prepared for the disclo

  5. Agecroft Partners estimates 90% of hedge funds using social media[more]

    The use of social media has increased significantly within the hedge fund industry over the past couple of years. Social media is broadly used by investors as part of their due diligence process on hedge funds, by service providers in their sales efforts to hedge funds, and by hedge funds to enhance