GLG Partners has made its first move to offer hedge fund strategies via the Ucits structure by launching the GLG Pure Alpha (Ucits III) Fund. The fund was listed for trading on the Irish Stock Exchange on June 25, according to an admission notice issued by the ISE.
Pure Alpha has a primary focus on European stocks, investing long and short using direct equity investments coupled with derivative plays. The fund will adopt a market-neutral approach and aims for annual net returns of over 10%, with volatility of 5-7%. It will use limited leverage and hold a diverse portfolio.
Ucits authorisation allows a fund to be marketed to investors throughout Europe, including retail clients who would otherwise be unable to access hedge fund strategies. GLG joins several other big-name firms--among them Brevan Howard Asset Management, Gartmore, Henderson New Star and Deutsche Bank--that have moved to embrace the structure in recent months as a way to better attract European money. Ucits adoption is seen as the big new trend, but it does have its doubters; Kinetic Advisory Founding Member David Butler recently told AIN he believes the hype to be "overblown" (totalalternatives.com, June 16).
GLG already runs a range of long-only funds via the Ucits structure. A spokeswoman for the firm did not have any immediate comment. --Robert Murray
This article was originally published in Alternative Investment News.