EIP opens new hedge fund
Enhanced Investment Products launches its second hedge fund in Hong Kong, which will take a multistrategy approach.
Hong Kong hedge fund Enhanced Investment Products (EIP) has launched its second hedge fund known as the EIP Aleph Fund. (Aleph is the Hebrew term for Alpha). The new fund has a $200 million target size and has been seeded by Triple A Investment Partners, which has also purchased a stake in the EIP asset management company.
The Aleph fund has a multistrategy approach, offering market neutral, relative value (for example: merger arbitrage and sub-trading) and volatility strategies.
Alongside the Aleph Fund is EIPÆs first fund, the $25 million EIP Overlay fund, which has a market neutral strategy abetted by a stock borrow arrangement from a sister index fund also run by EIP.
The target returns for the new fund are 15%-20% per year on a Sharpe Ratio of 1.5% to 2%.
The fund charges a 2% management fee and a 20% performance fee. The maximum leverage of the new fund is 500%, and the usual net exposure range is plus to minus 25%.
EIP will be increasing its portfolio management staff in the next few months, adding two more traders to bring its trade team up to six.
Service providers are Deutsche as prime broker and Citco as administrator.
The Aleph fund has a multistrategy approach, offering market neutral, relative value (for example: merger arbitrage and sub-trading) and volatility strategies.
Alongside the Aleph Fund is EIPÆs first fund, the $25 million EIP Overlay fund, which has a market neutral strategy abetted by a stock borrow arrangement from a sister index fund also run by EIP.
The target returns for the new fund are 15%-20% per year on a Sharpe Ratio of 1.5% to 2%.
The fund charges a 2% management fee and a 20% performance fee. The maximum leverage of the new fund is 500%, and the usual net exposure range is plus to minus 25%.
EIP will be increasing its portfolio management staff in the next few months, adding two more traders to bring its trade team up to six.
Service providers are Deutsche as prime broker and Citco as administrator.
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