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.”