London-based asset manager Cazenove Capital has announced it plans to launch its new Absolute UK Dynamic Fund in September. The fund will aim to achieve a return of 10 per cent plus per annum over the medium term.
Neil Pegrum and
Paul Marriage will co-manage the fund, which will follow a
approach to Mr Pegrum’s current hedge fund which he has managed since its May 2005 launch. Mr Marriage has worked closely with Mr Pegrum on the fund since he joined the business in November 2005.
The fund will invest across the UK equity market with an emphasis on mid and small-cap companies, taking both short and long positions on between 30 to 50 UK stocks. Both managers say they will adopt a pragmatic approach focused primarily at a stock picking level. Synthetic shorting will be achieved principally through contracts for difference, they said.
Since the 2005 launch of Mr Pegrum's fund, it has achieved an annualised 15.97 per cent net return against the FTSE All-Share Index annualised return of 1.12 per cent. The fund has achieved a positive return in 37 out of 48 months with volatility of 6.6 per cent per annum, less than half the volatility of the same index.
Cazenove Capital Management ended last year with assets under management of £10.9 billion (around $15.5 billion). In April, it recruited financial planner Nick Carter to its Jersey offices from Synergy Financial Services.