Omam prepares to unveil British fund
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Old Mutual Asset Managers (Omam) has announced it will launch a British absolute return fund for Luke Kerr in May.
The Old Mutual UK Specialist Absolute Return fund will be an Ireland-domiciled Ucits III portfolio, investing primarily in British equities outside the FTSE 100 index.
The fund will be managed in the same way as the Old Mutual UK Specialist Equity fund, a Cayman-domiciled long/short hedge fund launched in March 2003, which is also managed by Kerr. (article continues below)
Offering daily liquidity, Kerr’s approach incorporates top-down macroeconomic research and bottom-up stock selection.
Kerr is a member of Omam’s UK mid- and small-cap team, which manages over £1 billion in a range of funds and managed accounts.
In addition to running the UK Specialist Equity fund, Kerr also runs the Old Mutual UK Dynamic Equity fund, which was launched in July 2009. Between 2003 and 2008 he was the lead manager of the Old Mutual UK Select Smaller Companies offshore fund.
According to the Omam, Kerr’s long positions in the new fund must exhibit one or more of three characteristics. They must demonstrate the potential for sustained above average growth, profit upgrades, or a re-rating. The short positions will present the opposite characteristics.
The fund will charge an annual management fee of 1.5% and carry a 20% performance fee. The minimum investment is £1,000.
