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Focus Introducing Leverage Arbitrage Fund

By Staff Writer

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HAMILTON, Bermuda (HedgeWorld.com)-Focus Investment Group continues to roll out new funds and on March 1 will launch its latest arbitrage strategy.

The Focus Arbitrage Enhanced Fund will launch with approximately US$25 million from new and existing Focus investors. A leveraged version of the firm’s flagship arbitrage fund of funds, the new fund will be leveraged up to a maximum of 2.5 to 1.

The strategy will be managed pari passu with the Focus Arbitrage Fund, which has more than US$100 million in assets. Launched in 1998, the fund was closed to new investors in 2003 and has targeted returns of 6% to 10% annually. The fund currently invests in 28 managers that specialize in merger arbitrage, convertible arbitrage, event-driven, equity market neutral, volatility arbitrage, fixed-income arbitrage, multiple arbitrage and long/short high-yield strategies.

The leveraged fund is shooting for returns in the 12% to 15% range, with volatility remaining around 8%, according to a statement from Eugenio Verzili, managing director of Focus Investment Group.

In the second half of 2003, Focus officials launched two sets of principal-protected notes. Both notes were guaranteed by Barclays Bank and rely on the Focus Opportunity Fund as its underlying fund of funds .

Altogether, Focus has US$1 billion under management and advisement.