NEW YORK (HedgeWorld.com)– Ivy Asset Management enhanced its presence in the high-net-worth market with two registered hedge funds of funds. Filed with the Securities and Exchange Commission yesterday as closed-end investment companies, each vehicle seeks to raise a maximum of US$25 million.
Ivy Multi Manager Hedge Fund targets above-average capital appreciation with low to moderate risk, according to the filing. It will have an equity component of value-oriented stock picking managers, a special situations portion that includes merger arbitrage and distressed debt strategies and a relative value component that covers convertible arbitrage and equity market-neutral.
Ivy Long/Short Hedge Fund has the objective of high capital appreciation with limited volatility. In addition to long/short funds, it will include managers that pursue primarily long investing. Manager selection is expected to emphasize bottom-up stock pickers but might also include some with a top-down approach based on identifying trends in the economy or certain sectors.
Ivy believes newer managers might be better able to pursue these strategies than more established funds that may be constrained by large amounts of capital, the filing indicates. Both portfolios limit investment in any one manager to no more than 10% of total assets and will not put more than 25% into any one industry.
The products are aimed at individuals and families with a net worth of US$1.5 million or more and carry a management fee of 1.5%. There is no performance fee. The initial offering is expected to close Jan. 2, 2003.
Minimum initial investment is set at US$100,000. But investors who have at least US$750,000 managed by the Bank of New York, Ivy’s parent, can come in with a US$75,000 minimum. Redemption is twice a year, around Dec. 31 and June 30. ALPS Distributors is responsible for sales.
Long Island-headquartered Ivy started in the 1980s primarily serving wealthy individuals and family offices. But the firm, acquired by Bank of New York in 2000, increased its institutional client base in recent years to the extent that three-quarters of its assets are now from institutions. Ivy manages more than US$6 billion.