It will be a long/short Ucits compliant fund and is expected to launch before the end of the year, subject to appropriate approvals.
Murphy also manages the Old Mutual UK Select Equity fund, which is rated A by OBSR and Standard & Poor’s.
His new fund will invest across the market cap spectrum, with an aim to delivering positive returns over a 3-5 year investment cycle.
Both top down macro and bottom up analysis will be used in the fund’s stock selection.
OMAM, said: "Central to the fund’s offering is variable market exposure, meaning it is directional rather than market neutral. The fund will also seek to achieve a more consistent return profile than an equivalent long only fund – to achieve a lower level of volatility than traditional equity investing."
The fund will be domiciled in Dublin and have a minimum investment of £1,000. The annual management charge will be 1.5% and the performance fee will be 15% based on performance relative to six month libor interest rates.
Of investment opportunities in the UK at the moment, Murphy said: "I believe the UK equity market currently offers investors attractive opportunities, albeit with high degrees of volatility given the uncertain economic background.
"Many stocks are significantly undervalued at current levels and the Old Mutual UK Opportunities fund, being a long/short Ucits fund, will aim to maximise the upside potential while also mitigating volatility risk."
