Liberty Ermitage has launched a Diversified Strategies Fund with initial assets of US$80 million.
The firm says that the fund is designed in response to client demand for higher return fund of funds products. It will be diversified across 80-100 hedge fund managers, each investment being circa 1.0%-1.5% of the fund, to diversify risk. The Fund is aiming at 10-20% returns, with modest volatility and employs leverage of up to 3.5x.
“Many of our experienced hedge fund investors require products targeting a high return to complement our excellent range of low risk/volatility bond and equity substitute hedge funds,” explains Ian Cadby, Chief Investment Officer of Liberty Ermitage Group. “The Diversified Strategies Fund employs high diversification to reduce manager risk and optimise portfolio mix, using leverage to increase the return profile. Our Jersey based investment team have performed a significant amount of statistical modelling to produce the ideal portfolio, which has intrinsically shown an excellent risk adjusted return profile. Our own proprietary modelling together with third party academic studies have shown the benefits of an asset class that combines low correlated hedge fund strategies, a blend of emerging managers and leverage”.
The new Fund is registered in the Cayman Islands, managed by Liberty Ermitage Management (Bermuda) Limited, and the Investment Advisor is Liberty Ermitage Asset Management Jersey Limited. Four currency classes are offered to investors: Sterling, Euros, US Dollar and Swedish Kroner. Dealing is monthly with redemptions subject to 90 days notice. Minimum investment is $50,000 or currency equivalent. The annual management fee is 1.5% per annum and there is a 15% performance fee with high water mark.
“Innovation is one of the hallmarks of our Group and we are passionate about designing new product to match our client’s aspirations and staying abreast of the ever changing investment landscape,” says Ron Mitchell, CEO of Liberty Ermitage Group. “This Fund follows on from the highly successful launch of The Strategic Partners Fund Inc – one of the first European seeding Funds to be offered to the marketplace, The Liberty Ermitage Global Strategy Fund, which benefits from our macro expertise and the Liberty Ermitage Gold & Resources Fund, which captures what we believe to be the early stages of a major secular bull market for gold & precious metals. Whilst the Diversified Strategies Fund is largely driven by in-house quantitative modelling – the screening of managers and the final allocation decisions also benefit from our significant qualitative database and macro analysis.”