ZURICH, Switzerland (HedgeWorld.com)–Absolute Return Europe, a long/short hedge fund run by Florian Homm, listed its euro-denominated shares on the Irish Stock Exchange and signed a research agreement with Frankfurt Performance Management AG.
Ullrich Angersbach, one of the fund managers, explained that certain types of investors are required by regulators in their own countries to limit their hedge fund investments to those that are listed on an exchange. By listing on the ISE, the Absolute Return Europe fund will be meeting this requirement.
“The ARE Fund will now be able to accept subscriptions from a wider range of investors,” said Mr. Angersbach, in a statement. The fund, started March 1, 2002, manages assets of more than 50 million euros (US$56.6 million). It also recently has introduced shares denominated in U.S. dollars.
Mr. Homm is a veteran of Peter Lynch’s investment team at Boston-based Fidelity. Besides him and Mr. Angersbach, the fund’s managers include Darius Parsi. The firm, called Fortune Management Ltd., is based in Switzerland but has trading operations in Spain.
The team also announced that it has partnered with Frankfurt Performance Management to expand coverage of stocks; in particular, to catch company-specific developments as economic outlook improves. Frankfurt Performance Management, managed by Manfred Piontke and Martin Wirth, conducts research on 500 to 600 companies and runs a Germany fund.
Absolute Return Europe has done exceptionally well in the bear market, raking in 37% from March 2002 through the end of May 2003. But sharply rising markets are the least favorable condition for its approach–the agreement with Frankfurt Performance Management will help provide complementary expertise to screen investment ideas in this type of market.
“The ARE Fund focuses on identifying overvalued and undervalued European equities,” is how Mr. Homm describes the strategy. “One of the key characteristics of the ARE Fund is the blending of pair trades with catalyst-driven long/short positions governed by strict stop-loss limits.”
Fortune has recently expanded its trading capability as well as its research arm. Guillermo Hernandez joined as a full-time trader. He previously worked as a trader at Finacor, part of Credit Lyonnais, and two Frankfurt-based banks, Steubing and Seydler.