CROYDON, U.K. (HedgeWorld.com)–Forsyth Partners launched the Forsyth Leveraged Diversity Fund, a “highly diversified” fund of funds.
The offering period extends to Dec. 19 for the new fund, which is the firm’s fourth fund of funds. Domiciled in Bermuda, the Forsyth Leveraged Diversity Fund is expected to use the same investment methodology and fund selection criteria as the existing US$55 million Forsyth Diversity Fund.
The Leveraged Diversity Fund will manage a portfolio of 150 hedge funds selected to perform independently of each other. Forsyth plans to create an equal balance of liquidity, volatility and risk-orientated strategies. The portfolio will then be leveraged to boost both returns and to control risks, officials said in a press release.
According to a statement from Forsyth Partners’ Investments Director Rossen Djounov, the main difference between the firm’s initial diversity fund and the latest offering is in leverage and cash inflow patterns, which means officials will have the opportunity to assign different weightings to individual funds and fund managers.
The leveraged fund will be sold in four share classes: US dollars, sterling, euros and the Norwegian kronor. Targeting institutional investors and international intermediaries, the investment minimum is US$20,000 or currency equivalent.
The firm charges an annual management fee of 2% and a performance fee of 20% is based on a high watermark.
In addition to the original diversity fund and the leveraged fund and 10 equity and bond funds, Forsyth offers the Forsyth Alternative Income Fund and the Forsyth Equi-beta Fund. In Jersey the firm offers discretionary portfolio services, trust and company services and structured products for high-net-worth and institutional clients.
Forsyth has more than 450 companies in more than 40 countries as clients. Assets under management and administration total US$2.1 billion, including advisory contracts. A total of US$120 million is managed in funds of funds.