WEST PALM BEACH, FL (HEDGECO.NET) – Cazenove Capital Management is looking to launch retail access in September to its five hedge funds with a £1,000 minimum investment, four of which are closed to new investors. The usual entry investment is £100,000.

Cazenove Capital Absolute trust, will offer closed-end access to two hedge funds run by Tim Love, Chris Rice, Tim Russell and Neil Pegrum. The annual management charge on the underlying products is 1.4% on average, with a performance fee of 20% on all returns. The product carries no initial charge and discussions are ongoing regarding commission.

The £150m-capacity hedge fund, which targets an absolute return of 10% a year after fees, will be eligible for Pep, Isa and Sipp investments with any gains subject to CGT, the product is listed on AIM. Neil Pegrum’s UK Dynamic Absolute Return fund has the same target while Chris Rice’s European Equity Absolute Return fund aims to generate that level of return with lower volatility than the FTSE World Europe index.

These four products, which are all closed to new business, are joined on the panel by Tim Love’s Worldwide Absolute Return, which launched in June.

Robin Minter-Kemp, the firm’s managing director, said “Historically, the trust would have achieved 12.2% in annual returns with volatility of about 3%,” he said.

“These hedge funds are completely independent of the market and are designed to outperform cash. Because they can make money when the market falls, they will have minimum correlation. If you look at UK Equity Absolute Return, for example, its beta since launch in November 2003 is 0.07.”

Alex Akesson
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net

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