Old Mutual Global Investors is to launch a UK mid and small cap liquid alternative fund at the end of April.
The UK Specialist Equity fund, which will be managed by Tim Service and Luke Kerr, will take long and short positions in UK equities mostly outside the FTSE 100.
It will have between 80 to 110 holdings, the firm says.
The new fund will mirror the strategy of OMGI’s existing Cayman domiciled fund that was launched in 2003.
Service says: “Market volatility has increased in recent months, highlighting the potential value of alternative investments within a portfolio. The UK mid and small cap team has built a long and successful track record.
“This fund offers access to this expertise, with low net exposure to underlying equity markets, and the ability to deliver a return from falling as well as rising individual share prices.”
OMGI’s chief executive Richard Buxton recently told Fund Strategy the group was looking into expanding the liquid alternatives offering.
He said: “There is still a lot of demand for liquid alternatives so we’d like to do more there. Our Global Equity Absolute fund has been hugely successful so we want to do more on that systematic and style premia type of product. European long/short is something we don’t have, so we are adding that capability too.”
OMGI currently manages $6.3bn (£4.4bn) of assets under management in alternatives funds.