OMAM to launch UK long/short fund for Murphy

Old Mutual Asset Managers is to launch a long/short UK equity fund for Simon Murphy.

The Dublin-domiciled UK Opportunities fund will launch in the fourth quarter, subject to regulator approval, investing across the market cap spectrum. Murphy will be supported by Ashton Bradbury, head of equities.

Murphy is head of the UK large-cap team and also runs the £79m UK Select Equity fund.

The new fund will be directional rather than market neutral, aiming to deliver positive returns over a typical investment cycle of three to five years and OMAM said it believes it will have less volatility than a traditional long-only fund.

Murphy said: "Many stocks are significantly undervalued at current levels and the Old Mutual UK Opportunities fund, being a long/short UCITS fund, will aim to maximise the upside potential while also mitigating volatility risk."

Minimum investment will be £1,000 and an annual management charge of 1.5% and a performance fee of 15% are applicable. The performance fee for the fund will be based on performance relative to six-month LIBOR interest rates.