The £1.4 billion European equity boutique said the new share class is for investors looking to hedge against future euro weakness.

London-based Argonaut Capital has launched a sterling-hedged share class for its £395 million ($563 million) FP Argonaut European Alpha Fund.

The company said the share class, launched in response to growing demand from clients, provides an option for investors wishing to protect against, or potentially benefit from, fluctuations in the euro/sterling exchange rate. 

“UK investors often have strong views on the euro. Fears of a Brexit have recently triggered significant weakness in sterling, which may reverse post-referendum in the event of a pro-EU result,” said Barry Norris, Argonaut's founder and manager of the fund. 

“Therefore the time is right to offer a hedged share class option for Alpha unitholders wishing to protect themselves against future euro weakness.”

Over the last three years, the fund has returned 33.8 per cent, compared to a sector average for European equities (excluding the UK) of 23.6 per cent, according to Trustnet data. 

Last week, Argonaut announced some major organisational changes, including founder Barry Norris taking full ownership; the sale of its income funds to Liontrust; and Sanlam chief executive Jonathan Polin becoming chairman.