Liberty Ermitage Announces Soft Close, Adds Risk Management Tool

LONDON (HedgeWorld.com)--Following its April 1 subscription date, the Liberty Ermitage Asset Selection Fund will be closed to new investors.

Liberty Ermitage investors will be able to invest in new share classes of the fund that incorporate a new liquidity structure. Meanwhile, existing investors still will be allowed to invest in the original share classes until further notice, officials said in a news release earlier this month.

The Liberty Ermitage Asset Selection Fund is a multi-strategy fund of funds that is part of the US$3.5 million firm's US$1.7 billion hedge fund and fund of funds operation.

"Over the last year the fund has experienced significant inflows of assets with current assets under management standing around [US]$750 million," said Ian Cadby, chief executive and chief investment officer of Liberty Ermitage, in a statement. The inflows pushed officials to limit the amount of capacity offered in the existing share classes, Mr. Cadby said.

Separately, the firm chose to use Riskdata's FOFiX risk management software as part of its portfolio construction and risk management process. Riskdata will be used by Liberty Ermitage to quantify key risk factors driving performance among single managers and the fund of funds as a whole.

According to Riskdata, fund of fund managers favor the proactive approach to portfolio construction.

"We have found over the last year, that funds of hedge funds in London, New York and continental Europe increasingly recognize the importance of this approach to risk transparency," said Olivier le Marois, chief executive of Riskdata, in a statement.

Contact Bob Keane with questions or comments at: bkeane@investmentadvisor.com.

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