NEW YORK (HedgeWorld.com)– Fairfield Greenwich (UK) Ltd. registered a multi-strategy hedge fund, organized as a variable share capital investment company, in the Netherlands on the first of this month.
The fund, also registered in Luxembourg, is for Dutch and European Union private investors.
The firm is part of New York-headquartered Fairfield Greenwich Group, which has been managing offshore hedge funds in the United States for European clients since1983 and has more than US$5 billion in assets under management. FGG internally manages its own funds while forming long-term relationships with outside managers.
Fairfield Greenwich Fund (Luxembourg)-Multi-Strategy invests in hedged, arbitrage, relative value and event-driven strategies, relying on internal managers as well as external talent. According to Cornelis Boele, the FGG partner responsible for the Benelux countries, the firm’s multi-manager model differs from funds of funds that try to reduce risk by constructing portfolios of large numbers of managers with whom they typically have limited, often short-term relationships. By contrast, FGG multi-manager funds are composed of relatively fewer managers, but these have undergone in-depth due diligence and provide full portfolio transparency so that FGG can monitor risk comprehensively.
“In effect, this enables FGG multi-manager funds to deliver the risk diversification benefits of a fund of funds along with the benefits which come from our intimate and/or joint venture relationship with each rigorously selected underlying manager,” Mr. Boele said in a written statement. “These benefits include reduced risk of surprises and an enhanced ability to provide investors with manager intelligence and full administrative and client support services, all on a more cost-effective basis.”
Fairfield Greenwich Multi-Strategy has been approved and registered for distribution by the Dutch regulatory authority, Autoriteit Financi?le Markten. FGG intends to also register it in other markets suitable for alternative investment products of this type. It is listed on the Luxembourg Stock Exchange and offers classes denominated in euros and U.S. dollars.
It provides monthly liquidity and requires a minimum investment of 25,000 euros (US$29,278) for private investors and one million euros for institutions. Annual fees for Class A shares are 1% management and 5% performance.
“We know that there are many Dutch investors who want lower volatility alternative vehicles that can provide good diversification to their portfolios,” Mr. Boele stated. “The underlying funds in this portfolio, consistent with our core investment philosophy, are expected to have relatively low volatility, low correlation both within the portfolio and to the broader markets and good risk adjusted performance. We believe that this combination of attributes, which is achieved as a result of FGG’s careful manager selection and our ability to perform accurate risk monitoring due to our complete portfolio transparency, will provide an excellent opportunity for investors.”