The DekaBank Group is expanding its product range to include its first umbrella hedge fund.
The Deka-HedgeSelect fund will offer both private and institutional investors the opportunity to benefit from a range of hedge fund styles, along with the know-how of different hedge fund managers. Hedge fund managers enjoy greater investment freedom than traditional fund managers. For example, they are not only able to buy and sell securities but can also engage in so-called short selling or leveraged transactions. Established under German law, the Deka-HedgeSelect fund is managed by Deka Investment. The fund management is advised by RMF, a core Investment Manager of Man Investments. The Swiss company, which specialises in managing umbrella hedge funds, has access to the full infrastructure and know-how of Man Investments. RMF makes investment recommendations and provides risk management support.
“Working with RMF gives us access to the know-how of one of the world’s leading umbrella hedge fund managers and in doing so enables us to provide a high-quality selection of hedge funds”, says Rolf Dreiseidler, head of Umbrella Hedge Funds at Deka Investment.
“The mix of different single hedge funds with a variety of investment strategies enables us to exploit various sources of returns, which means we can limit price fluctuations and risks from the outset,” explains Dreiseidler.
The actively managed umbrella hedge fund invests worldwide and covers all hedge fund styles. Deka-HedgeSelect invests in “managed account-based” target funds. These investment vehicles are characterised by a particularly high degree of transparency and liquidity and make it possible to subject the activities of the individual hedge fund managers to comprehensive risk monitoring. Deka HedgeSelect will initially consist of 20 single hedge funds following the styles “equity hedged”, “relative value”, “event driven”, “global macro” and “managed futures”. The weighting of the individual investment styles in the Deka-HedgeSelect fund is established by agreement with RMF and is reviewed at regular intervals.