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By Benedicte Gravrand, Opalesque London:

Fund manager Rose & Sky Investments (Cayman) Ltd., which also has an investment adviser office in Switzerland (Rose & Sky Investments AG), launched a new fund on 31st August-09.

The Rose & Sky Europe Fund has a unique strategy which focuses on highly liquid Pan-European stocks. The uniqueness is found in the style of the fund, which is a hybrid of a long-short and a market-neutral strategy, combining the positive aspects of both of these, while maintaining market neutrality. The managers claim it is positioned to be a low-risk investment, with the benefit of being delta hedged during non-trading hours. The fund is designed for low volatility and independence from market trends and conditions. It is highly transparent and offers daily liquidity.

"Our strategy is a combination of equity market neutral and equity long short," said Fred Pedersen, a manager at the Swiss office. "From a risk perspective, it is equity market neutral. We aim to neutralize systematic risk by setting up long-short pairs in narrowly defined industry aggregations."

When the managers see a pair working, they take it out of the market neutral state and apply a long-short strategy in order to maximise profits. They manage each pair separately and closely. It is not about switching back and forth between market neutral and long-short - as part of the portfolio will al......................

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