Blue Oar set to launch absolute return

Blue Oar Asset Management plans to add a third fund to its range, an absolute return vehicle that will sit within its Oeic umbrella.


Blue Oar Asset Management plans to add a third fund to its range, an absolute return vehicle that will sit within its Oeic umbrella. The portfolio is likely to be similar to the offshore Blue Oar UK Equity Long Short fund, which is run by Adrian Akers, a former manager of the Credit Suisse Income fund.

John Rosier, the managing director of the asset management arm, says the fund will sit in the IMA Absolute Return sector and likened the vehicle to funds offered by BlackRock and Cazenove – UK Absolute Alpha and UK Target Return.

Blue Oar is an investment bank listed on the Alternative Investment Market (Aim), which launched an asset management division in May 2008. The first fund brought to the retail market was the UK Mid Cap Unique Companies fund in June, managed by Rosier.

In July Akers (pictured) was hired to launch the long/short vehicle after running a dummy portfolio while taking an eight-year break from fund management. He previously worked at Mercury Asset Management and ran the Credit Suisse Income fund from 1970-90.

The long/short fund, domiciled in the Cayman Islands, was launched to the institutional market on October 1. Rosier plans to roll it out to retail investors in February in a Ucits III structure.

Rosier, a partner at Matrix Alternative Asset Management until 2007, says: “We are carrying out the due diligence on launching an absolute return fund to sit under the Oeic umbrella with the UK Mid Cap Unique fund. We will probably press the button in terms of going ahead some time before Christmas.”

The fund, as yet unnamed, aims for an annual absolute return of over 15% through investments in 50- 100 long and short positions. Since its launch the fund was up 1.94% in sterling terms to November 28.

Akers has held large-cap defensives on the long book and short positions in real estate, commodity and economy-sensitive stocks.

On November 28, 87% of the exposure was on the long side and 22% on the short side, net exposure was 64%.