US boutique Perella Weinberg Partners is to launch its North America Equity Long/Short fund in a Ucits format later this quarter.
The vehicle is being marketed to wealth managers and will launch on the Fidante Ucits platform, the alternative strategies facility overseen by former Dalton Strategic Partnership chief executive Magnus Spence.
The fund is based on an existing strategy that has run for over a decade in the US, and which Fidante said had produced a positive performance in every year including 2008.
As with the existing product, the daily dealing Ucits fund will be managed by David Baker and his team. Mr Baker, former head of Deutsche Bank’s global equity proprietary trading group, has run the portfolio since inception in 2005.
It will aim to return between 8 and 10 per cent a year, net of fees, and will operate with an annual volatility target of between 6 and 8 per cent.
The company plans to launch the fund with around $100m (£71m) of seed and founder share capital.
The founder share class will charge a preferential management fee of 0.75 per cent, compared with the standard 1 per cent, and a preferential performance fee of 10 per cent – versus a standard 17.5 per cent.
The fund’s additional expenses will be capped at 0.4 per cent.
The long/short basis for the strategy will be combined with an event-driven portfolio seeking to take advantage of temporary mispricing of stocks following disruptive events such as mergers and acquisitions. Behavioural tools, such as technical and sentiment indicators, will also be used.
The portfolio will maintain a low net market exposure in a bid to limit its correlation to equity indices.
Fidante’s Ucits platform was launched last summer by alternatives boutique Dexion Capital. Dexion was acquired by Fidante last July and rebranded under its parent company’s name in March.
