Kames Capital has launched two UK equity absolute return funds for David Griffiths, David Pringle and Malcolm McPartlin.
Both new funds will be run to a ‘market neutral’ strategy, where managers choose to invest in certain stocks and then use derivatives to remove the impact of the wider market, known as hedging.
This approach aims to isolate the stock’s relative outperformance of the market whether or not an index rises or falls.
The Kames Equity Market Neutral fund will target a return of cash plus 4 per cent over rolling 3 year periods, while the Kames Equity Market Neutral Plus fund will aim to deliver cash plus 8 per cent in the same time period.
Both funds will be domiciled in Dublin but will be available for investors in the UK with a sterling share class.
Mr Griffiths and Mr Pringle already run the Kames UK Equity Absolute Return fund, which Kames said has delivered a return of 21 per cent since its launch in February 2010.
