The Ucits III compliant Old Mutual UK Specialist Absolute Return Fund will adopt an identical investment strategy to the firm’s Cayman-domiciled UK Specialist Equity Fund, a long/short hedge fund strategy launched for Kerr in March 2003.

It will invest primarily in UK equities, outside the FTSE 100 Index, taking a top-down, macroeconomic research and bottom-up stock selection approach. Long positions must display at least one or more of three attributes: the potential for sustained above average growth, profit upgrades, or a re-rating, with short positions exhibiting the opposite characteristics.

Available in £ and Euro share classes, the Old Mutual UK Specialist Absolute Return Fund will be launched as a sub-fund of Old Mutual Dublin Funds and will offer daily liquidity.

Authorisation is being sought from the Irish Financial Services Regulatory Authority and applications will initially be made to register the fund for sale in the UK, France, Sweden, Switzerland, Italy and Spain.

Manager Kerr is a member of OMAM’s UK mid & small cap team which manages over £1bn in a range of public funds and managed accounts including long-only and short-extension Oeics and equity long/short hedge funds.  He joined the team in 2001 and, from 2003 until 2008, was the manager of Old Mutual (Dublin) UK Select Smaller Companies Fund.

As well as the UK Specialist Equity Fund, Kerr currently manages the Old Mutual UK Dynamic Equity Fund, an Ireland-domiciled Ucits III enhanced return fund launched in July 2009.