MIAMI (HedgeWorld.com)–PRS Group has launched a fund of funds consisting of managers focused exclusively on the European market. The PRS Mondrian Fund will comprise funds that either are domiciled in Europe or that concentrate their investments in European securities.
The fund, launched April 1, is a diversified portfolio and was launched with 15 managers across six strategies: long/short equity, event-driven, relative value, global macro, commodity trading advisers and emerging markets. As with other funds of funds managed by PRS, the Mondrian Fund will have a proprietary hedging overlay aimed at reducing portfolio volatility.
The investment team will be led by Mark Casa, director of investments for PRS, and will use various instruments to hedge away risk.
According to Medon Michaelides, director of U.S. sales for PRS, the firm had seen high demand for a European-concentrated portfolio.
Mondrian is the fourth fund of funds launched by PRS; the others are PRS Cezanne, a traditional multi-manager portfolio; PRS Chinook, an equity oriented fund investing primarily in long/short equity managers; and PRS Enhanced Income, which consists of managers investing across various debt strategies. Nine of Mondrian’s 15 managers are also in these other vehicles, and according to the firm a ready supply of other European-focused managers are available as the fund grows.
According to Mr. Casa, PRS is well positioned to capitalize on opportunities in Europe. “Many high-quality investment managers are domiciled in Europe,” he said. “Current hedge fund investors are looking for additional opportunities in an increasingly crowded market. A European-focused fund makes sense today.”
Fees for the fund are 1% for management and 10% for performance, with a 0.1% administrative fee. Liquidity is monthly, and there is no lock-up period.
The fund’s administrator is PRS International Ltd; its law firm is Ogier-Boxalls; and the auditor is KPMG. All are in the Cayman Islands.
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