Bloxham to launch absolute return fund

Pramit Ghose, managing partner and head of wealth management, confirmed Bloxham's first long/short product had been seeded with €10m (£8.5m) and is awaiting approval from the Irish Financial Regulator.

He said he expected it to go live this autumn, with a UK version of the fund - its second UK Oeic - to follow "within months".

"What's happened in the past two years has meant fund-management business models have suffered," he said. "We're investing in equities, unable to short. Clients either say, 'why didn't you sell everything?', or 'don't hold more than 10 per cent in cash because you're an equity fund'.

"If you're an active fund manager and you think a stock is overvalued, all you can do is not hold it. With a long/short approach, you're more diversified."

Mr Ghose said Bloxham's technical analysis system could identify when a stock was breaking a trend on the upside or downside.

"If you buy a stock at 10, and it goes to 12, you take the 20 per cent and sell," he said. "Now, if that stock goes to 12, the Midas model can identify if it's likely to go up to 15."

The fund manager will be Des Flood, although Mr Ghose described his role as "an overseer", with heavy reliance on the Midas system designed by Kevin McConnell, head of equity and quant research.

Both the Irish and UK funds will be global equity products with a target of cash plus 400-500 basis points.