GAM expands hedge fund range

Gam is building its presence in the hedge fund world with the launch of two products, focusing on Ch...

Gam is building its presence in the hedge fund world with the launch of two products, focusing on China and global emerging markets respectively. Greater China Equity Hedge is managed by Hong Kong-based Michael Lai and targets returns of 20% to 25% per annum.

Domiciled in the British Virgin Islands, the fund invests in securities issued by companies with either assets in, or revenues derived from, China and Hong Kong. The portfolio has a minimum investment level of £15,000, with an initial fee of up to 5% and an annual charge of 1.525%. A performance fee of 20% on all returns will also be levied.

Lai said: “The fund will have a more concentrated portfolio than Gam Asia Equity Hedge, with around 15 to 30 stocks. Its risk profile will be higher and, in our view, it should appeal to a different type of investor.” The portfolio will carry 15 to 40 long positions and 0 to 10 short positions. Global Emerging Markets Hedge, headed up by Sean Taylor, is also domiciled in the British Virgin Islands and currently focuses on Brazil, Korea, Russia and frontier markets, with banks, technology and materials among its major sectors.

As with Greater China Equity Hedge, the fund carries a performance fee of 20% on all returns while the initial fee is up to 5% and annual charge is 1.5%. Minimum investment in the product is $60,000 with subsequent minimum investments of $12,500 or currency equivalent.