UK fund manager, New Star is to launch a hedge fund that will invest predominantly in property securities in the last quarter of 2007. New Star has recruited Robin White from Rock Capital to run the fund and who will join in September 2007. Mr White has been investing in property securities on a long/short basis for eight years and has managed the Rock Real Estate Securities Fund since its launch in July 2006, producing an annualised return of 22 per cent to 31 May 2007 with no negative months. Separately, New Star is rationalising its single strategy hedge fund range by closing three small funds investing in the UK, Japan and Asia that had combined assets under management of $78 million at the end of June. The New Star UK Hedge Fund, New Star Japan Hedge Fund and New Star Asia Renaissance Hedge Fund have produced returns of 5.0 per cent, 2.4 per cent and 5.7 per cent respectively over the first five months of this year, but according to New Star they were below an optimum size to continue in operation.