Bryan Garnier Asset Management, the institutional asset management arm of Bryan Garnier & Co, has launched a new open-ended hedge fund, the European Growth Long/Short Fund, which tracks European companies in growth sectors.
Aimed at both pension funds and institutional investors, the fund aims to achieve an annualised return of 15 to 20%. The fund, developed and managed by Adriaan Klop, Chief Investment Officer at Bryan Garnier, will include up to 40 stocks from four distinct sectors, identified as having the strongest growth potential by Bryan Garnier: Technology-Media-Telecommunications, Life Sciences, Brands & Specialty Retailing and Outsourcing.
“The backbone of our investment strategy is to apply a quantitative alpha extraction and risk management process to the fundamental stock-picking expertise of Bryan Garnier’s highly regarded in-house independent equity research,” says Klop. “Our proprietary risk management and control process, which systematically executes trading signals, scrutinizes every position for volatility, exposure and profitability against set annualized targets, such as 12 – 15 % for volatility. Our investment approach is risk focused but research and ideas driven. We want our investors to grow their wealth without taking undue risk. The Fund should realise a return in excess of 15 %, after fees, over a 2 to 3 year period.”
For its initial test phase, the highly quantitative Fund is launched with € 1 m already under commitment. Mr Klop estimates an overall capacity at € 400 m as Bryan Garnier is already under discussion with several European institutions for significant commitments and capacity deals. Bryan Garnier is confident that investors will find the Fund an attractive proposition.
The new fund is the first of a series of hedge funds to be launched by Bryan Garnier in the next 18 months. The firm intends to design and manage additional European equity-based investment vehicles in the future.