Swiss & Global Asset Management has launched a European absolute return fund which invests in 50-80 long and short equity positions.
The Julius Baer Absolute Return Europe Equity fund is managed by Andy Kastner at Swiss & Global and is benchmarked against three-month euro Libor.
Using total return swaps, each of Kastner’s long positions is paired with an equally weighted short position from the same sector to ensure a market neutral investment strategy. (article continues below)
The fund can also make use of temporary market movements to build up long or short market exposure through using equity index futures.
Structured as a Ucits III Luxembourg Sicav, the fund carries a 1.2% management fee and a performance fee of 10% of the outperformance of the benchmark.