Dalton Strategic Partnership (DSP) is launching a Ucits-compliant version of its Melchior European fund.
Set to launch on 1 February, the MST European Fund, a sub-fund of Luxembourg Sicav the Melchior Selected Trust, will aim to deliver an absolute positive return which is uncorrelated to equity or bond markets.
It will be managed by Leonard Charlton, a former portfolio manager at GLG and current manager of the Melchior European Fund.
The MST European Fund combines a fundamental approach to selecting long and short positions, with an active trading overlay. It will comprise 30-60 positions, normally in individual European stocks and will typically operate within a net exposure range of +/- 20%. Gross exposure will normally be between 80%-150%.
“We believe the time is right to launch a Ucits-compliant version of the Melchior European Fund,” said Magnus Spence, Partner at DSP.
“The MST European Fund is an ideal vehicle for those investors looking to invest in a European equity long/short fund via a regulated product, which draws on Leonard’s hedge fund management experience.
“The new Fund will implement the same strategy as the existing hedge fund which Leonard has managed so successfully over the last three years. We do not envisage any changes to the strategy arising from the Ucits structure.”
Launched
in October 2006, the Melchior European Fund achieved a positive return of 8.01% in 2007, 6.26% in 2008 and 4.29% in 2009. The new launch will be the first time a fund managed by Charlton is available to investors in a regulated product.
IA FUND FACTS:
Name: MST European Fund
Domicile: Luxembourg
Minimum investment: $10,000 or equiv retail, $250,000 or equiv institutional
Share classes: $, £ or €
Type of fund: open-ended absolute return fund
Annual charge: 2% retail A&C share class, 1.5% institutional B&D share class
Performance fee: 20% of returns in excess of 1 month EURIBOR
Launch date: 1 February 2010
Manager: Leonard Charlton
UK distributor status: yes
