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Portfolio > ETFs > Broad Market

Barclays Opens European Market Neutral Fund

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LONDON (HedgeWorld.com)–Barclays Global Investors Ltd. launched its second market neutral fund, the European Equity Market Neutral Fund.

The new fund will use the same investment process used to manage its long-only European equity portfolio, which has beaten its benchmark by 2.84% over a recent five-year period. BGI’s first market neutral hedge fund, the BGI UK Equity Market Neutral Fund, was closed earlier this year with US$750 million in assets.

The targeted return on the new fund is 10 percentage points above the three-month LIBID while keeping volatility at 10% a year relative to its benchmark. The Dublin-registered fund will be offered in both euro and U.S. dollar versions with a minimum of 250,000 euro. The fund will have positions in about 350 stocks selected from a universe of about 500.

Earlier in the year, Barclays unveiled a more aggressive version of its U.K. equity market neutral fund–originally launched in 2000–that was quickly filled to capacity Previous HedgeWorld Story. BGI manages US$2 billion in hedge fund and more than US$500 billion overall.


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