EIPÆs Aleph fund opens to outside investors

Toby Bland is taking his bag on the road for an Enhanced Investment Products hedge fund, the EIP Aleph Fund. ('Aleph' is Jewish for 'Alpha'.)

The fund is run by a quartet of portfolio managers. It was launched in April and seeded by CLSA, the Iveagh Trust and Triple A Investment Partners. The latter also purchased a stake in EIP.

The Aleph fund's returns to date are 8.7%, and it is now open to external investors. It has a pan-Asia multi-strategy approach, combining event-driven strategies -- such as relative value, share-class arbitrage and merger arbitrage -- with volatility trading and convertible bond arbitrage.

The target returns for the Aleph fund are 16-18% a year on a Sharpe ratio of 1.5% to 2%. The charges for the new fund are a 2% management fee and 20% performance fee. Maximum leverage is 500%, and the usual net exposure range is +25% to -25%.

Alongside the Aleph Fund is EIP's first fund, the EIP Overlay Fund, a market-neutral strategy fund with a stock-borrowing arrangement from a sister index fund also run by EIP.

Deutsche Bank is the prime broker and Citco the administrator.