Rock Capital Group, a London-based firm specialising in real estate fund management, is to launch the Rock Real Estate Securities Fund, a pa...

Rock Capital Group, a London-based firm specialising in real estate fund management, is to launch the Rock Real Estate Securities Fund, a pan-European fund which invests in long/short real estate securities. Rock Capital said the new fund, which will be launched on 12 June, is the only one of its type focused solely on Europe. The fund is primarily targeted at high net worth individuals, funds of funds and family offices with at least £100,000 ($128,200) to invest, who are seeking real estate sector exposure with downside protection. Investors will pay an annual management charge of 1.5 per cent and a 15 per cent performance fee. There is a 25 per cent discount on fees for subsequent investors. The fund has a target return of 15 per cent per annum. The fund will be managed by Robin White, previously of Liberty International and the investment advisor on the real estate securities element of the New Star Property Unit Trust. Mr White told WealthBriefing: "Real estate is a cyclical industry. Property shares have gone up but you not want to be long only especially in volatile market conditions, you would want to hedge against that." According to Rock Capital a lot of people want to get in to this sector with the introduction of REITs in the UK and much interest in Continental Europe, however there are not many that have the necessary experience. In addition there is very little coverage from the analyst community at the moment. Mr White added: "If you look at the big investment banks they are desperate to gear up for this; poaching from one another. There is a lot of musical chairs. It is a sector that has stayed small for a long time."