GAM Taps Demand for Absolute Returns with New European Fund

Tom Burroughes

9 September 2008

GAM, the UK alternative investment manager, said it is launching an absolute return fund called GAM Star Absolute EuroSystematic that is designed to make money in all market conditions.

The new fund will be managed by Ross Hollyman, investment director, and his team. GAM Star Absolute EuroSystematic is a European equity long/short fund which will make use of European regulations enabling such funds to use derivatives to take long and short positions in European markets.

“We are looking to create a well diversified portfolio of typically 100–150 long and 100–150 short positions,” said Mr Hollyman. “We screen approximately 3,000 European stocks with market capitalisations typically of over €450 million ($635 million) according to three key factors; value, earning's quality and momentum. The results of this screening create a 'buy list' for the long portfolio and a 'sell list' for the short portfolio.”

The fund, which is structured as a UCITS III vehicle, is domiciled in Dublin and requires a minimum investment of $10,000.