WEST PALM BEACH, FL (HEDGECO.NET) – Julius Baer has announced that it is launching a new single strategy hedge fund. The new product is an innovative absolute-return fund geared towards private andinstitutional investors. The fund has a unique combination of features that opens up a wide range of investment opportunities while also offering the advantages of a traditional fund productaccording to the released information. Some of the features of the fund include the fund�s low correlation to stock and bond market performance; active, opportunistic and global approach with broaddiversification opportunities in all asset classes (incl. commodities and hedge funds) systematic and controlled use of derivative investment instruments (hedging and trading), and ability to sellshort and use leverage to maximize investment opportunities and manage risk.
According to the release, �The aim of the Julius Baer Multi-Strategy Fund is to generate positive absolute returns regardless of the market direction, while at the same time seeking the lowest possible correlation to the stock and bond markets. The fund can invest in all asset classes within defined ranges. The portfolio focuses on equities, investment-grade bonds and currencies, tactically supplemented with high-yield bonds, real estate, hedge funds, commodities and money market investments.�
The new product will also use a �flexible global orientation ��to profit from various market developments while also diversifying the portfolio with uncorrelated risks.� In order to achieve the targeted absolute return, the fund can also employ short-selling, derivative instruments and leverage. The systematic investment process, which brings together Julius Baer�s extensive in-house asset management expertise, is accompanied by a rigorous risk management approach.
The fund�s relevant risks will be �measured and controlled by modern systems and instruments that enable the targeted risk level (5-10% per year, as measured by Value-at-Risk) to be monitored and compliance with investment restrictions guaranteed, both before (ex ante risks) and after (ex post risks) the investment decision is made.�
The fund will be domiciled in Switzerland, under Swiss law with special risks. It will be launched by the end of 2004, fee structure includes a performance fee of �10% p.a., hurdle rate: 3-month CHF Libor + 3%, incl. high watermark�. Further details should be channelled to kostas.iordanidis@juliusbaer.com.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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