CSA launches mirror of HK fund of hedge funds

Hong Kong-based fund manager Charles Schmitt & Associates has listed a fund of hedge funds in Dublin in response to demand from UK fund strategists. CSA achieved the listing by taking over an existing fund of hedge funds listed in Dublin, which already had $17m invested. The CSA Absolute Return fund (Dublin) invests in around 10 market-neutral subfunds using seven different hedge fund strategies, and aims to achieve absolute returns every year whatever the market conditions. It is a mirror fund of the Hong Kong-listed CSA Absolute Return fund, which was launched in February 2002 and was up 14.45% in 2003 net of fees. CSA director of business development Brian MacDougall says the Dublin listing was requested by UK intermediaries after he gave a presentation at the PIMS conference last year. He says: “Markets are going up right now and that is exciting, but over the last three years trillions of dollars were lost on the markets. Markets are going to fall off at some stage. We are offering returns that have been between 9% and 23% each year since 1997.” Strategies used by the subfunds include long/short equity, M&A arbitrage, convertible arbitrage, multiple arbitrage, distressed securities, mortgage-backed securities and fixed income arbitrage. The fund has a minimum investment of $100,000 or its sterling equivalent, a 5% initial charge and a 2% annual management charge, plus a quarterly performance fee of one-tenth of the return achieved above that of three-month US treasury bills. Broker commission is up to 4%.