$1.3 billion hedge fund manager Dalton Strategic Partnership (DSP) has launched the Melchior European Fund (MEF), a pan-European Long/Short All-Cap Equity Fund.
It aims at returns of 12% per annum irrespective of market direction and expects to operate within a volatility range of 6% to 12% per annum. Typically, the MEF will hold 20 to 80 stocks on the long side and 10 to 30 short positions plus index swaps and futures.
“I am confident MEF will offer investors positive absolute returns and genuine protection on the downside,” says Magnus Spence, a Founder Partner at DSP.
“This fund provides me with the opportunity to have a real impact on DSP and it is tremendously exciting to be working on one’s own fund. I am delighted to be working with such a talented team and I expect to benefit from the outstanding investment debate within the firm,” adds Leonard Charlton, the Portfolio Manager at MEF.