Following the successful launch of the Cazenove UK Absolute Target Fund, which has raised GBP245m
since launch (July 2008), Cazenove Capital plans
Following the successful launch of the Cazenove UK Absolute Target Fund, which has raised GBP245m since launch (July 2008), Cazenove Capital plans to launch the Cazenove Absolute UK Dynamic Fund - subject to FSA approval.
The new fund, which will be co-managed by Neil Pegrum and Paul Marriage will be available on 7 September and will aim to achieve a return of 10% + per annum over the medium term1.
The Absolute UK Dynamic Fund will follow a similar investment approach to Pegrum’s current hedge fund which he has managed since launch in May 2005, achieving an annualised 15.97%2 net return against the FTSE All-Share Index annualised return of 1.12%, including positive returns in 37 out of 48 months with volatility of 6.6% per annum, less than half the volatility of the FTSE All-Share Index. Marriage has worked closely with Pegrum on the fund since he joined the business in November 2005.
The Cazenove Absolute UK Dynamic Fund will invest across the UK equity market with an emphasis on mid and small-cap companies. Both managers adopt a pragmatic approach focused primarily at a stock picking level. Synthetic shorting will be achieved principally through contracts for difference (CFDs).
The approach will be unconstrained with between 30 and 50 UK stocks in both short and long positions and Cazenove expects the new fund’s long positions to be similar to that of the hedge fund and its UK Dynamic Fund – a sub-fund of the UK OEIC, which was launched by Pegrum in 2004.
’Neil and Paul have successfully worked together for six years in managing absolute and long strategies,’ says
Robin Minter-Kemp, Managing Director of Investment Funds. ‘The proposed launch of the Cazenove Absolute UK Dynamic Fund will complement both Neil and Paul’s
extensive stock selection experience across the UK equity market combining both managers’ skills in one