Attica-LJH To Launch Austrian Hedge Fund With Median 10% Return Target

ATTICA LJH Investment Management Ltd, an asset management company based in the UK and he US, will launch its first Austrian hedge fund of funds on May 21, 2004. Backed by Sal Oppenheim and Orsini Rosenberg & Senden, the new

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ATTICA-LJH Investment Management Ltd, an asset management company based in the UK and he US, will launch its first Austrian hedge fund of funds on May 21, 2004.

Backed by Sal Oppenheim and Orsini – Rosenberg & Senden, the new fund represents the firm’s commitment to bringing the hedge fund opportunity to Austrian investors.

During a presentation this week in Vienna, ATTICA-LJH Chief Investment Officer James R. Hedges and Chairman Robert van Maasdijk pointed out that even though the first hedge fund was started 50 years ago, the concept of hedge funds is still relatively new for many European investors. The industry has accelerated during the last 20 years, and today there are 6,500 global hedge fund managers with more than $800 billion under management, with expectations of a 20 25% growth rate.

“The development of hedge funds represents an evolution of asset management, requiring a focus on fundamental research, absolute returns and effective risk management, thus eliminating partially or totally market timing and thereby reducing the risks associated with the traditional way of investing,” said Hedges.

Amid uncertainties regarding interest rates, equity markets, bond yields, health care costs and pension fund liabilities related to the aging population of the Western World, ATTICA-LJH views the concept of hedge fund of funds as having the potential of an even faster growth rate of penetration in Europe than has been seen over the last 20 years in the United States.

“We would not be surprised to see private, as well as institutional investors, targeting up to 30% of their assets in the hedge fund concept over the next three years. With interest rates as low as they are and equity and other asset markets remaining volatile, investors will focus on capital preservation and low volatility/risk with a goal of achieving an absolute return of 6-8% per year,” commented Hedges.

ATTICA-LJH has selected 30 managers comprising 12 different styles from its in-house database of 4,200 managers for the Oppenheim Attica Multi Hedge Fund. The objective is to achieve above average returns with bond-like levels of volatility, constructing a diversified portfolio in view of the extreme difficulties of predicting the future, through an “All Weather Fund.” The objective is to achieve a yearly return of 8-12% with a volatility of 3-5 %, the company said.

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