HSBC opens up Next Generation Fund
From Products Feb 15 2012 BY: Esther Armstrong
, Senior Reporter
, Portfolio Adviser
HSBC has launched high net worth (HNW) and institutional share classes for its Next Generation Fund, which invests in "new and upcoming hedge fund managers" and targets an annualised return of 12% to 15%.
The group said, as one of the largest investors in hedge funds globally, it will use its experience garnered over two decades of hedge fund research and portfolio management to gain access to hedge fund talent for its clients.
The HSBC Next Generation Fund is a concentrated portfolio comprising 10 to 15 emerging managers across all hedge fund strategies.
It offers monthly liquidity and has a target volatility of 8% to 10%.
The underlying managers must have a sound industry reputation and a proven track record at investment banks and established hedge funds, HSBC said.
Initial investments include new funds Avantium Liquid EM Macro, managed by Kay Haigh and Apson Global Fund, managed by Edouard Salet.
The Guernsey-domiciled fund was launched in September 2011 to founder investors and now has almost $100m in AUM. The HNW share class is open to investments of $25,000 or €25,000 and above, while the institutional share class has a minimum investment threshold of $2.5m.
Peter Rigg, global head of HSBC's alternative investment group, said: "HSBC has been researching emerging managers for many years, and we have an established track record of investing in some of the best new managers in the industry.
"This fund provides our clients with direct access to a new generation of hedge fund managers, combined with our proven track record in due diligence and portfolio management," he added.