LONDON (HedgeWorld.com)–EFG Private Bank Ltd. is relaunching two new hedge funds of funds under the new brand name of New Capital.
The New Capital All-Weather Fund is a multi-strategy fund of funds, while the New Capital Absolute Return Fund is an equity long/short hedge fund of funds. Both are being run with the assistance of Ibbotson Associates, which signed a deal with EFG earlier this year to assist with the firm’s hedge fund of funds management. That effort at Ibbotson is headed by Ezra Zask Previous HedgeWorld Story.
EFG’s funds previously were set to be sold under the Bridgewater name, but that idea was dropped to avoid confusion with Bridgewater Associates Inc., a Westport, Conn., money manager and hedge fund manager.
EFG also wanted a separate name for its funds to keep funds within the EFG family straight. EFG’s Swiss operation has its own set of funds and using the New Capital name will make it easier to keep them straight, said Mozamil Afzal, head of investment management. Moreover, using the New Capital name reflects EFG’s approach to partnering with outside firms when necessary, he said. In addition to Ibbotson, EFG inked deals with David Tice to manage a gold hedge fund and with GAM to run single manager hedge funds Previous HedgeWorld Story.
EFG’s most recent deal is with Partners Asset Management Ltd., Guernsey, to manage a fixed-income fund that will take a hedge fund-like approach to its management, though it will be long only. The New Capital Total Return Bond Fund will be managed jointly by EFG unit New Capital and Partners and will try to do well throughout the fixed-income market cycle, Mr. Afzal said.
That could mean shifting the fund’s duration and credit exposure more than a typical bond fund in order to take advantage of the most promising parts of the market. Mr. Afzal has managed a high-quality bond fund, the New Capital International Bond Fund, since the mid-1990s, he said. Partners will perform credit analysis and security selection for the new fund, while New Capital will manage it from a macro, top-down perspective, Mr. Afzal said.
Partners also manages a high-yield hedge fund under the Stellar Funds PCC Ltd. name Previous HedgeWorld Story. Paul Brain is chief investment officer at Partners.
EFG Private Bank is a unit of EFG Group, Geneva.